Financial operations and regimes. Annuities and amortization schedules. NPV, IRR and choice criteria for investment operations. Zero coupon bonds and coupon bonds. Duration. Excel for financial applications.
"Matematica Finanziaria", G. Scandolo, Amon Ed (2013)
"Matematica Finanziaria - Esercizi svolti", G. Scandolo, Amon Ed (2013)
Some material will be available on Moodle regarding Excel.
Learning Objectives
To be able to formalize, in mathematical terms, basic financial problems.
To be able to apply tools from Calculus to solve them.
To be able to implement the solution process with a PC (using Excel).
To be able to verify the consistency of the obtained solutions.
Prerequisites
No formal prerequisites.
Teaching Methods
Class lectures and exercise sessions (also using Excel).
Further information
Students are warmly invited to enrol in the Moodle page of the course (ready by feb 23)
Type of Assessment
Written, closed book exam; a pocket calculator is allowed. See E-Learning for more details.
Course program
References are to the textbook “Matematica Finanziaria”, G. Scandolo
Basic financial operations (chap 1)
Annuities evaluation and debt amortization (chap 3)
Internal rate of returns and choice criteria for financial projects (chap 4)
Bonds, Zero Coupon Bonds and Coupon Bearing Bonds, bond yield (chap 5)
Duration (chap 7)
(note: the final program includes only some parts of the listed chapters; see E-learning for details)