Financial Mathematics - UQU

Time Value of Money / a. interest rate (rate of interest), simple interest, compound interest accumulation function, future value, current value, present value, net present value, equation of value. / b. discount factor, discount rate (rate of discount), convertible m-thly, nominal rate, effective rate, inflation and real rate of interest, force of interest 2 Annuities/cash flows with payments that are not contingent / a. Level annuity, finite term / b. Level perpetuity / c. Non-level annuities/cash flows / i) Arithmetic progression, finite term / ii) Arithmetic progression, perpetuity / iii) Geometric progression, finite term / iv) Geometric progression, perpetuity / v) Other non-level annuities/cash flows 3 Loans / a. Principal, interest, term of loan. / b. Outstanding balance, final payment (drop payment, balloon payment). / c. Amortization. d. Sinking fund 4 General Cash Flows and Portfolios Continuous Life Annuities / a. Yield rate/rate of return, dollar-weighted rate of return, time-weighted rate of return, current value. / b. Duration (Macaulay and modified), convexity (Macaulay and modified), portfolio, / c. Spot rate, forward rate, yield curve, stock price, stock dividend 5 Interest Rate Swaps / a. swap rate, swap term or swap tenor, notional amount, / b. market value of a swap, settlement dates, settlement period, counterparties, / c. deferred swap, amortizing swap, accreting swap, interest rate swap net payments