FINANCIAL MATHEMATICS

Course objectives

Knowledge and understanding: students will be able to understand the basic financial mechanisms driving investments and debt, to compile reimbursement plans, to grab the meaning of a simple bond market. Applying knowledge and understanding: students will be able to compute interest rates of investments and loans, to assess the amortization schedule of a mortgage and to calculate the probability of a huge number of events of different kinds. Making judgement: students will develop the necessary skills to understand and deal with all the basic notions of Finance. Communication skills: students will develop the skills to discuss and analyse the issues of current financial affairs. Learning skills: students will be able to read and understand the articles of the main financial journals and to develop own related ideas by themselves.

Channel 1
VALERIA D'AMATO Lecturers' profile

Program - Frequency - Exams

Course program
1. Capitalization and discount Capitalization Discount Equivalence of interest rates Simultaneous capitals Decomposability. Cantelli Theorem 2. Annuities certain Integer and constant annuities Annuities in arithmetic acceleration Annuities in geometric acceleration Fractional annuities 3. Amortized loans Description The different modalities of loan’s reimbursement 4. Bonds loans The mathematical description The different modalities of a bonds loan’s reimbursement. Yields associates with a bonds’ loan Basic model for the determination of a bond value 5. Investment analysis The different criteria for investment analysis The analysis of a single investment The choice among several investments Fixed income bonds. Interest Rate Term Structure. Duration: financial immunization and volatility of the bond price.
Prerequisites
Foundation of mathematics. Study of function
Frequency
In person
Exam mode
Written and oral tests
Lesson mode
Lessons in presence
  • Lesson code1017164
  • Academic year2025/2026
  • CourseManagement and corporate law
  • CurriculumSingle curriculum
  • Year2nd year
  • Semester2nd semester
  • SSDSECS-S/06
  • CFU9