Gold Coast, Australia
Area of Study
Taught In English
Students must have successfully completed STAT11-112 Quantitative Methods or equivalent prior to undertaking ACSC12-201
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3 - 4
Recommended U.S. Quarter Units4.5 - 6
Hours & Credits
IntroductionThis subject provides a foundation in the mathematics that underpins financial calculations. The theory of financial mathematics is supplemented with applications of that theory to real world problems. These practical applications include valuing a series of cashflows (annuities), valuing bonds with tax implications, calculating loan repayment schedules, valuing forward contracts, modelling investment returns, selecting investment projects and estimating the sensitivity of a series of cashflows to interest rate changes.Learning Objectives1. Describe the time value of money concept and apply it in different situations; understand the difference between real and money interest rates.2. Define and analyse basic compound interest problems.3. Calculate present and future values for a wide variety of cash flow streams, using effective and nominal interest rates.4. Calculate a schedule of loan repayments and identify capital and interest components.5. Use discounted cash flow techniques to perform project appraisal and capital budgeting.6. Understand the investment and risk characteristics of a variety of investment assets7. Demonstrate an understanding of the term structure of interest rates8. Calculate the delivery price and the arbitrage-free value of a forward contract. Understand and apply probability rules and concepts relating to discrete and continuous random variables9. Demonstrate an understanding of simple stochastic models for investment returns
Courses and course hours of instruction are subject to change.
Eligibility for courses may be subject to a placement exam and/or pre-requisites.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.