Mathematics of Finance - ACST202
This unit provides a rigorous mathematical development of compound interest theory, using calculus where appropriate, applying the theory to problems more complex than those encountered in ACST101. Topics include the force of interest and its relationship to interest rates, inflation and capital gains tax, discrete and continuous term certain annuities, project appraisal, loans, bonds, yield curves, matching and immunisation, pricing by the 'no arbitrage' assumption, and forward rate agreements. Students are assumed to be able to use the basic functionality of a spreadsheet package of their choice. The concepts developed in this unit are required in several subsequent units in the actuarial degree. Students gaining a grade of credit or higher in this unit are eligible for exemption from subject CT1 of the professional exams of The Institute of Actuaries of Australia.
| Credit Points: | 3 |
| When Offered: | S1 Day - Session 1, North Ryde, Day |
| Staff Contact(s): | Actuarial staff |
| Prerequisites: |
(ACST101(Cr) or ACST152 or WACT101(Cr)) and MATH133 and GPA of 4.50 (out of 7.0) |
| Corequisites: | |
| NCCW(s): | ACST200, ACST201 |
| Unit Designation(s): | |
| Unit Type: | |
| Assessed As: | Graded |
| Offered By: | Department of Applied Finance and Actuarial Studies Faculty of Business and Economics |
Course structures, including unit offerings, are subject to change.
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