Financial Mathematics - NU

. Interest Theory & AccumulationCompounding Methods: Differentiating between simple interest, discrete compound interest, and continuous compounding (\(A = P e^{rt}\)).Time Value of Money: Calculating present value (discounting) and converting between nominal rates (\(i^{(m)}\)) and effective annual interest rates.💸 2. Annuities & Yield RatesAnnuities-Certain: Valuing steady cash streams where payments occur at the end of periods (Annuities-Immediate) or at the start (Annuities-Due).Perpetuities & Evaluation: Modeling infinite payment streams and solving Equations of Value to find the Internal Rate of Return (IRR).📋 3. Loans & AmortizationAmortization Schedules: Splitting periodic loan payments into their interest obligations and principal repayment components.Sinking Funds: Setting up parallel interest-bearing savings plans to completely pay off a lump-sum debt at maturity.📊 4. Bond ValuationBond Pricing: Calculating the market purchase price of coupon bonds based on the face value, coupon rate, and current market yield.Premium vs. Discount: Analyzing if a bond sells above or below its par value.