|
| |
302397 (v.2) Actuarial Mathematics 202
Area: | Department of Mathematics and Statistics |
Credits: | 25.0 |
Contact Hours: | 4.0 |
Lecture: | 3 x 1 Hours Weekly |
Tutorial: | 1 x 1 Hours Weekly |
Prerequisite(s): | 7063 (v.6) Mathematics 102 or any previous version
AND
7150 (v.7) Statistical Methods 102 or any previous version
|
Syllabus: | Cash flow models, time value of money and introduction to interest, interest rates, discounting and accumulating, level annuities, more complex annuities, equations of value, loan schedules, investments, project appraisal, practical applications, term structure of interest rates, Stochastic interest rate models, arbitrage and forward contracts. |
| |
Unit Outcomes: | On successful completion of the unit the student will be able to describe simple and compound interest functions and apply these to describe transactions in terms of cashflow, incorporating contingent payments, use discounted cashflow techniques to calculate time value of annuities, bonds and fixed interest securities with and without tax on interest and capital gains, calculate time value using interest or discount rates relating to different time periods, calculate the present or future value of a series of not necessarily equal payments allowing for inflation, describe and apply significant compound interest formulae, devise an equation of value, calculate interest and capital installments required to repay a loan, perform an investment project appraisal using discounted cashflow techniques, describe the nature of the investment and risk characteristics of fixed-interest government borrowings, fixed-interest borrowing by other bodies, shares and other equity-type finance and derivatives, calculate thedelivery price and the value of a forward contract using arbitrage free pricing methods, demonstrate an understanding of the term structure of interest rates and demonstrate an understanding of simple stochastic interest rates. |
Texts and references listed below are for your information only and current as of September 30, 2003. Some units taught offshore are modified at selected locations. Please check with the unit coordinator for up-to-date information and approved offshore variations to unit information before finalising study and textbook purchases. |
Unit References: | Atkinson M. E and Dickson D. C. M., (2000), 'An Introduction to Actuarial Studies', Edward Elgar Publishing, Cheltenham. Bowermann S. A., (1997), 'Mathematics of Investments and Credits', 2nd ed. Actex Publication Inc, Winslet. Bowers N. L, Gerber H. U.,Hickman J. C., Jones D. A. & Nesbitt C. J., (1997), Actuarial Mathematics' , Society of Acturaries, USA. Donald D. W. A., (1970), 'Compound Interest and Annuities Certain', 2nd ed, The University Press, Cambridge. Gerber H. U., (1997), 'Life Insurance Mathematics', 3rd ed, Springer, Berlin. Ingersoll J. E., (1987), 'Theory of Financial Decision Making', Rowman & Littlefield. Kellison S. G., (1991), 'The Theory of Interest', 2nd ed, Irwin. Williamson G. K., (1993) 'All About Annuities', New York, John Wiley & Sons . |
Unit Texts: | McCutcheon J.J and Scott W. F., (1986), 'An Introduction to the Mathematics of Finance', Heinemann, London. 'Actuarial Mathematics 202', Curtin Publication. |
| |
Unit Assessment Breakdown: | Final Examination 70%. Assignment 10%. Mid Semester Test 20%. This is by grade/mark assessment. |
Field of Education: | 29900 Other Information Technology (Narrow Grouping) | HECS Band (if applicable): | 2 |
|
Extent to which this unit or thesis utilises online information: | Informational | Result Type: | Grade/Mark |
|
Availability
| Year | Location | Period | Internal | Area External | Central External | | 2004 | Bentley Campus | Semester 2 | Y | | |
Area
External | refers to external course/units run by the School or Department, offered online or through Web CT, or offered by research. |
Central
External | refers to external course/units run through the Curtin Bentley-based Distance Education Area |
|
Click here for a printable version of this page
|
|
|
|
