Asia Pacific University of Technology and Innovation
Banking Law
ACCOUNTING AQ03211

Winter 2016
Financial Mathematics
Immunization
Topic & Structure of the lesson
Sensitivity of Cash Flows to Interest Rates
Duration of Cash Flows Sequences
Convexity of Cash Flows Sequences
Multi period Immunization and Contingent
Immunization.
AQ0043.52FMTS
I
Asia Pacific University of Technology and Innovation
Banking Law
ACCOUNTING AQ03211

Winter 2016
Financial Mathematics
Investment Appraisal
Topic & Structure of the lesson
Introduction
Accounting Rate of Return
Payback Period and Discounted
Payback Period
Net Present Value
Internal Rates of Return
Moneyweighted Rate of Return
Timeweighted Rate of R
Asia Pacific University of Technology and Innovation
Banking Law
ACCOUNTING AQ03211

Winter 2016
Financial Mathematics
General Cash Flows and Portfolios
Topic & Structure of the lesson
Arbitrage and Forward Contracts
Spot rates and Forward rates
Calculating the value of Forward contracts in the
absence of Arbitrage
The yield curve and the term st
Asia Pacific University of Technology and Innovation
Banking Law
ACCOUNTING AQ03211

Winter 2016
Financial Mathematics
Time Value of Money
Topic & Structure of the lesson
Introduction to the time value of
money
Effective rates of interest
Nominal Rates of Interest
Effective and Nominal Rates of
Discount
Force of Interest
AQ0043.52FMTS
Time Value o
Asia Pacific University of Technology and Innovation
Banking Law
ACCOUNTING AQ03211

Winter 2016
Financial Mathematics
Bond Investments
Topic & Structure of the lesson
Introduction
Properties of Fixed Interest Securities
Valuing Bonds
Prices and Yield of fixed interest securities,
with taxation
Callable bonds.
Indexlinked bonds.
AQ0043.52FM
Asia Pacific University of Technology and Innovation
Banking Law
ACCOUNTING AQ03211

Winter 2016
Financial Mathematics
Annuities
Topic & Structure of the lesson
The accumulated and present value of
annuities (due and ordinary)
Solving equations of value for unknown
payments, interest rates or time by Linear
Interpolation
Perpetuities
Increasing an
Asia Pacific University of Technology and Innovation
Banking Law
ACCOUNTING AQ03211

Winter 2016
Financial Mathematics
Introduction and Overview
Prerequisites for this module
None
AQ0043.52FMTS
Introduction
Aims of This Module
AQ0043.52FMTS
The aim of this module is to provide
students with a solid grounding in
Financial Mathematics and their