Topics include compound interest functions; valuation of a series of payments, including where the cash flows and/or the force of interest are continuous functions of time; equations of value; loans repayable by instalments; characteristics of major asset types; and discount valuation of fixed interest securities, ordinary shares and property, including effects of tax; discount valuation of index-linked bonds and forward contracts; term structure of interest rates; duration and convexity; discounted cash flow techniques; distributions of accumulations and present values. -- Course Website
Prerequisites: Students who have not previously studied probability theory must take MAST20004 Probability (may be taken concurrently with this subject). Subject Study Period Commencement: Credit Points: MAST20004 Probability Semester 1 12.50
