This course on Mathematics of Finance presents the basic tools for financial calculations. It aims at satisfying the needs for the application of mathematics of finance concepts through a standard computer software - Excel - widely used by students and professionals all over the world for finance and capital markets.
Excel, which is a very helpful and powerful tool, provides the user with a wide range of financial functions that are introduced and linked to the formulae of mathematics of finance presented in the course. In addition, the course presents parameterised worksheets for each type of problem, allowing the e-student to deal with similar problems by only changing the entry date in the worksheet.
At the end of the course, the participants should be able to:
- Develop cognitive skills on problems of Mathematics of Finance involving simple interest, discount and interest rates, compound interest and annuities certain.
- Develop cognitive skills on problems of amortisation and sinking funds in connection with annuities certain.
- Develop cognitive skills on problems of valuation of fixed income securities, i.e. short-term money market instruments, fix income securities following different methodologies applied for each security.
- Develop cognitive skills on problems dealing with linear and exponential depreciation methods for capital goods.
- Explain the concept of contingent annuities with elementary applications to life expectancy and life insurance.
The course consists of the following modules:
- Simple Interest, Discount, Compound Interest and Equations of Value.
- Annuities Certain.
- Amortisation, Sinking Funds and Depreciation.
- Valuation of Fixed Income Securities and Contingent Annuities.
In order to ensure the best possible outreach, the course will be delivered through e-learning. Through a multiple-instructional setting, the goal is to achieve the learning objectives by means of learning technologies that match personal learning styles and by the inclusion of non-linear learning that aims at the development of just-in-time skills of adult learners. At the same time, in order to allow participants maximum flexibility of scheduling, the learning will be conducted in an asynchronous manner. Using a state-of-the-art training architecture, UNITAR will combine self-learning with assessments and online discussions. The pedagogy - adapted specifically to professionals in full-time work - will help train participants through various experiences: absorb (read); do (activity); interact (socialize); reflect (relate to one’s own reality).
The course provides all the basic elements for a first-level knowledge of Mathematics of Finance.
The course requires the application of elementary algebra and calculus. It is assumed that the student enrolling in the course is familiar with these concepts, however, a short reminder of those is made in an annex to the course.
The course privileges the use of Excel spreadsheets for illustration and for solving the different practical problems presented to the students. Therefore, a basic knowledge in the use of this tool is required as well. It would be desirable if the students have installed in their computers Excel 2007, or preferably, Excel 2010. Many of the calculations would need functionalities associated with either of these two Excel versions.
Quizzes and case studies:
• At the end of each module there will be a quiz and a case study posted at the discussion forum: a grade will be assigned to the quiz and to the case study.
• The quizzes and the case studies are designed to test the participant’s procedural knowledge of each one of the modules.
• There will be four case studies proposed to the students, one for each module of the course: the submission of the case study properly solved is compulsory.
• The case studies will be proposed as an Excel Template that will guide the e-student in the use of Excel and the application of the concepts of the course using this tool.
• Participants are required to pass each quiz and obtain at least an average grade of 80% or more.
• Participants are required to solve the case studies, which can be discussed interacting with the course director and with other participants.
• Participants are required to solve the four case studies and submit them to the course director for evaluation, which requires at least 80% or more for obtaining a passing grade.
• Participants obtaining a grade of 80% or more, calculated as the average of the quizzes’ grades average and the case studies’ grades average are eligible for the certificate.
This course is oriented to all persons interested in finance, in particular, those that are involved in financing, insurance and banking, either in private or public sectors units.
A certificate of completion will be issued by UNITAR to all participants who complete the course-related assignments and assessments successfully. Course schedule is subject to change. Course fee is non-refundable but transferrable to another course or participant and subject to change as per UNITAR's policy on pricing.