BUS2016H - Actuarial Science 1: Financial Mathematics
18 credits at NQF level 6
ACC1006F/S and ACC2011S (60% average); or ACC1106F and ACC2111S (60% average); ECO1010F/S and ECO1011S (60% average); or ECO1110H/F and ECO1111F (60% average); STA1006S (70%); MAM1000W (70%); or MAM1005F/H and MAM1006S/H (70% average). Alternatively, [STA2004F and STA2005S (60% average); MAM2000W (60%)]
The course aims to provide a grounding in financial mathematics and simple applications with respect to non-random cash flows. Lectures and tutorials will cover aspects of cash flow models for financial transactions, compound interest and discounting, present values and accumulations of streams of payments, nominal and effective rates, equations of value, loan schedules, project appraisal techniques, compound interest problems and index linked securities, income and capital gains tax on fixed interest securities, arbitrage pricing and forward contracts, basic types of assets, pricing methods and the term structure of interest rates.