# Financial Math

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This course provides students with a fundamental knowledge of financial mathematics. Student will learn how to apply this knowledge when understanding calculating the time value of money, both present and accumulated. There will be a focus on various cash flows as they apply to reserving, pricing, investments, and budgeting. Student will also be introduced to derivatives and no-arbitrage. This course will provide students the basic material to be mastered for the Financial Mathematics professional Examination.

This undergraduate-level course is 5 weeks To enroll, speak with an Enrollment Representative.

#### Course details:

Credits: 3
Continuing education units: XX
Professional development units: XX
Duration: 5 weeks

#### Time Value of Money (Miracle of Compound Interest)

• Define Interest calculation vocabulary.
• Identify 4 items necessary in an interest calculation.
• Explain the connection between different interest rate types.
• Describe the Equation of Value given a set of cash flows and an interest rate type value.
• Calculate the Time Value of Money.

#### Annuities and other Cash Flows not Contingent

• Define Annuity Terms.
• Explain the connection between the components of an annuity.
• Calculate an annuity.
• Describe the process to determine the price of stock using the dividend discount model.

#### Loans

• Define Loan Terms.
• Explain the connection between the different components of a loan.
• Calculate the outstanding balance of loan.
• Calculate the amount of principal and interest in any payment.

#### Bonds, General Cash Flow and Immunizations

• Define bond, general cash flow, and immunization terms.
• Explain the connection between the components of a bond.
• Describe constructing an investment portfolio based on 3 methods: 1) Full Immunization, 2)matching present value/duration, and 3) exactly matching cash flows.
• Calculate portfolio yield rate and duration.

#### Financial Economics Introduction

• Define Financial Market Investment Instrument related terms.
• Explain the connection between various investment products.
• Explain a put call parity calculation.
• Explain how the No-Arbitrage concept is used to calculate theoretical value of swaps, forwards, and futures.
• Compare different hedging strategies.
• Calculate the value of derivative contracts.
Tuition for individual courses varies. For more information, please call or chat live with an Enrollment Representative.