Second Year BAFS
MATH 20130 and 20210
Fundamentals of Actuarial
and Financial Mathematics I & II
The author, Dr Russell Higgs welcomes any
suggestions for improving this web page.
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Contents
v Lecturer
v Lectures
Lecturer
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Name: |
Dr Russell Higgs |
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Room: |
14, Science Education and Research Centre |
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E-mail: |
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Tel: |
(01) 716 2576 |
Feel free to come and see
me if and when you have a question about anything in this course. I usually
remain in the classroom for a couple of minutes after each lecture to allow any
student who wants to speak to me to do so. If your question demands a long
answer or if you have more than one question then make an appointment to see
me. You can do this after any lecture or, if you prefer, by sending me an
e-mail message.
My office hours for these
modules are on Tuesdays from 3 to 4.45 p.m.
Course Outline
Mission Statement of the
Actuarial Profession:
To develop the role and
enhance the reputation of the actuarial profession in providing expert and
relevant solutions to financial and business problems, especially those
involving uncertain future events.
During this course you will
learn:
v to develop an understanding of basic
financial instruments;
v to develop computational skills used
in the actuarial profession;
v to develop team skills by working
together on problems;
v
to
develop a good class spirit (future financial contacts).
Prerequisites: There are no
needed prerequisites for this course, but its results will be used in survival
models, financial theory and actuarial investments.
Assessment:
Designated homework
problems will be collected and marked, these marks can constitute up to 15% of
the final mark for weaker students. (The exact rules for applying this are
complicated and will be explained in detail in class.) However for students
aiming for an exemption, assessment will be by final examination, 2 hours per
module, x and y questions, answer all of them. Pass mark is 40% in each module.
The course is divided into
13 units as listed below:
1.
Generalised
Cash Flow Models;
2.
The
Time Value of Money;
3.
Interest
Rates;
4.
Discounting
and Accumulating;
5.
Compound
Interest Functions;
6.
Yield
Equations;
7.
Loan
Schedules;
8.
Project
Appraisal;
9.
Investments;
10.
Simple
Compound Interest Problems;
11.
Forward
Contracts and the No Arbitrage Assumption;
12.
Term
Structure of Interest Rates;
13. Stochastic Interest Rate Models.
Reading List
The only book for this
course is An Introduction to the Mathematics of Finance by J.J.
McCutcheon and W.F. Scott, published by Butterworth-Heinemann, but you will
also need a set of Formulae and Tables for Actuarial Examinations
published by the Institute of Actuaries.
The second is a compulsory
purchase whereas the first is optional, please wait for further details on how
to order these.
Lectures (First Semester)
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Day |
Time |
Place |
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Monday |
11 a.m. |
Arts Th N |
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Tuesday |
2 p.m. |
Eng 234 |
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Wednesday |
3 p.m. |
Eng 016 |
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Thursday |
3 p.m. |
Eng 016 |
Lectures
(Second Semester)
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Day |
Time |
Place |
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Monday |
11 a.m. |
Eng 135 |
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Tuesday |
2 p.m. |
Ag G08 |
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Wednesday |
12 noon |
Ag G08 |
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Thursday |
2 p.m. |
Eng 326 |
Tutorials
Each student should attend
the MATH 20130/20210 tutorial each week.
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Day |
Time |
Place |
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Homework Assignments
Homework sheets for these
modules will be handed out in class only, with solutions given on the
blackboard in the tutorial.
Examination Information
Final examinations, 2 hours
each, x and y questions, answer all of them. Pass mark is 40% in both modules.
Five credits each out of a total of 60 are available.
An exemption from the
Institute (CT1) is available for students who perform well in these modules,
minimum requirement is a 2.1 score on average over both modules.
Good time management is
essential during the examinations.
GOOD LUCK!
***********************************************************************
Dr Russell Higgs, UCD
School of Mathematical Science, University College Dublin, Belfield, Dublin 4,
Ireland.
E-mail: Russell.Higgs@ucd.ie
Tel: +353-1-716-2576
Fax: +353-1-716-1196