Outline |
Schedule |
Lectures and problems |
To cover the Theory of Interest part of Society of Actuaries' Exam FM. Topics will include Interest Rate Measurement, Annuities, Loan repayment, Bond valuation, Measuring rate of return of an investment, Term structure of interest rates, Duration and Immunization, Stock valuation, short sales, fixed income securities.
Note: We will cover the sections outlined in Option B listed on the FM website.
This class will follow a similar outline to previous two years. The schedule for the course can be found here; lecture notes and sample problems can be found here
The exams and tests have been open book. This will continue for the final and the mid-term. However, you will only be allowed a one-page hand written cheat-sheet to each test.
Depending on time we may touch on additional topics of financial derivatives and the no-arbitrage concept which will be covered by the FM exam starting May 2007.