Lecturer(s): Dr Gechun Liang
Important: This module is only available to students on four year degrees in the Department of Statistics (MMORSE and MMathStat).
Prerequisite(s): ST218/219 Mathematical Statistics A&B
This module runs in Term 1.
Commitment: This will be a reading course based on handouts; there will be a one two-hour session every week.
- Interest rates and discount rates.
- Equations of value and compound interest calculations.
- Discounted cash flow.
- Types of investment.
- Concept of arbitrage.
- Introduction to the term structure of interest rates.
- Stochastic interest rate models.
Aims: To cover the syllabus for Actuarial CT1
Objectives: At the end of the course, students will:
- be familiar with basic financial terminology and be able to understand the financial press.
- be able to carry out basic financial calculations.
Leads to: Knowledge of basic financial terminology necessary for several other modules.
Assessment: 3 one-hour class tests (each 15%) with 2-hour examination in January (55%).
Deadline: Class Test 1: week 4, Class Test 2: week 7 and Class Test 3: week 10.
Feedback: Feedback on class tests will be returned after 2 weeks, following each test. The results of the January examination will be available in week 10 of term 2.
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