COURSE UNIT TITLE

: FINANCIAL MATHEMATICS

DEGREE PROGRAMMES

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
STA 5091 FINANCIAL MATHEMATICS ELECTIVE 3 0 0 7

Offered By

Graduate School of Natural and Applied Sciences

Level of Course Unit

Second Cycle Programmes (Master's Degree)

Course Coordinator

PROFESSOR DOCTOR GÜÇKAN YAPAR

Offered to

Statistics
Statistics
STATISTICS

Course Objective

The main objective of this course is to provide an understanding of the fundamental concepts of financial mathematics, and how those concepts are applied in calculating present and accumulated values for various streams of cash flows.

Learning Outcomes of the Course Unit

1   At the end of this course students will be able to calculate interest and discount rate in respect of simple and compound interest operations
2   At the end of this course students will be able to calculate unknown values by equation of value
3   At the end of this course students will be able to calculate present and accumulated value functions
4   At the end of this course students will be able to calculate non-annual interest and discount operation problems
5   At the end of this course students will be able to calculate functions of annuity
6   At the end of this course students will be able to calculate financial calculations related to yield rate
7   At the end of this course students will be able to calculate problems related to amortization schedules and sinking fund

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 Time Value of Money, Simple and Compound Interest Concept.
2 The Concept of Present and Accumulated Value.
3 Effective and Nominal Interest Rates, Effective and Nominal Discount Rates. The Force of Interest.
4 Equation of value and to find unknown time and unknown interest rate.
5 The Concept of Annuity. Annuity Due and Annuity Immediate.
6 Deferred Annuity and Perpetuities.
7 To find unknown time and unknown interest rate for annuity problems. Varying annuities and Applications.
8 Midterm exam
9 Continuous Annuities and Applications.
10 Non-annual Annuities and problem solving.
11 Discounted Cash Flow Analysis.
12 Nominal vs. Real Interest Rate.
13 Investment Fund, homework.
14 Loans: the amortization and the sinking fund Methods.

Recomended or Required Reading

Textbook(s):
S. G. KELLISON, The Theory of Interest, 2nd Edition, Mc Graw Hill, 1991.
Supplementary Book(s):
C. Ruckman and J. Francis, Financial Mathematics, 2th Edition, BPP.

Planned Learning Activities and Teaching Methods

The course consists of lecture, class discussion and problem solving.

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 PRJ PROJECT
2 MTE MIDTERM EXAM
3 FIN FINAL EXAM
4 FCG FINAL COURSE GRADE PRJ * 0.30 + MTE * 0.30 + FIN * 0.40
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) PRJ * 0.30 + MTE * 0.30 + RST * 0.40


*** Resit Exam is Not Administered in Institutions Where Resit is not Applicable.

Further Notes About Assessment Methods

None

Assessment Criteria

Exams, homework.

Language of Instruction

English

Course Policies and Rules

Student responsibilities: Attendance to at least 70% for the lectures is an essential requirement of this course and is the responsibility of the student. It is necessary that attendance to the lecture and homework delivery must be on time. Any unethical behavior that occurs either in presentations or in exams will be dealt with as outlined in school policy. You can find the undergraduate policy at http://web.deu.edu.tr/fen.

Contact Details for the Lecturer(s)

DEU Faculty of Science, Department of Statistic
e-mail: guckan.yapar@deu.edu.tr
Tel: 0232 301 85 59

Office Hours

To be announced.

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 14 3 42
Preparation before/after weekly lectures 14 3 42
Preparing Individual Assignments 1 30 30
Preparation for Mid-term Exam 1 27 27
Preparation for Final Exam 1 30 30
Final 1 2 2
Midterm 1 2 2
TOTAL WORKLOAD (hours) 175

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10
LO.1555
LO.2555
LO.3555
LO.4555
LO.5555
LO.6555
LO.7555

CONTACT INFORMATION
Dokuz Eylül Üniversitesi Cumhuriyet Bulvarı No: 144 35210 Alsancak / İZMİR
Phone: +90(232) 412 12 12 - Fax: +90 (232) 464 81 35

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