Financial Mathematics

Financial Mathematics is a building block to learners in the field of finance. The topics expose the user to fundamental concepts such as cash flows, present value, future value, yield, and probability that form the basis for further advanced learning.

 

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Target Audience

Portfolio managers, institutional sales staff, research analysts, back office professionals, financial analysts, cash/money managers, auditors, and compliance staff.

Learning Objectives

Students will be able to:

  • Evaluate cash flows at various points in time
  • Gain an insight into basic financial measures such as current yield, yield-to-maturity, and total return analysis
  • Analyze the mechanics of bond pricing and issues involved therein
  • Understand the concepts of volatility and correlation in financial asset prices

Course Syllabus

Basic Financial Measures

Topics covered include:

  • The various yield measures
  • The concept of net present value for evaluating investment proposals
  • The concept of duration, modified duration and convexity and their calculations
  • The concept of basis point value

Duration: 2 hours

Time Value of Money

Topics covered include:

  • The concept and importance of time value of money
  • The various methods to calculate the future and the present value of cash flows
  • The concept of future and present value of an annuity
  • The concept of amortization

Duration: 1.5 hours

Bond Pricing

Topics covered include:

  • The calculation of price of a option free bond
  • The price determination process when settlement date falls between two coupon periods
  • The different types of yield and the formula to calculate them
  • The price volatility characteristics of option free bonds

Duration: 1 hour

Yield Curve Analysis

Topics covered include:

  • The concept of yield curve and its types
  • The various theories under yield curve analysis
  • The types of interest rates and its computation
  • The applications of yield curve analysis

Duration: 1 hour

Probability Distributions and Their Properties

Topics covered include:

  • The concept of probability distributions
  • The different types of probability distributions
  • The properties of each of the distributions

Duration: 1 hour

Measuring Volatility

Topics covered include:

  • The basic statistical measures and methods to compute them
  • Normal distribution and establishing the relationship between standard deviation and confidence level through a normal distribution function
  • The concept of volatility and its characteristics
  • The measures of risk exposures and the characteristics of financial asset price movements
  • The estimation of volatility using historical and implied volatility models

Duration: 1 hour

Correlation and Regression Analysis

Topics covered include:

  • The concept of correlation and coefficient of correlation
  • The different types of correlation
  • The methods of measuring correlation
  • The concept of regression analysis
  • The methods of computing regression lines
  • The significance of standard error and the coefficient of determination

Duration: 1 hour

JOB AIDS

  • Measurement Tools

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SESSIONS AVAILABLE

This New York Institute of Finance eLearning course is available 24 hours a day, 7 days a week and is designed so you can learn at your own pace - anytime and anywhere you access the Internet.

COURSE INFORMATION

ICB Credits 14.75
ICPAS Credits 3
Price
$175 USD
Duration 8.5 Hours
Advance Preparation
No advance preparation required.
Prerequisites
This course has no prerequisites.
Instructional Method
Self-Study Online
Level
Basic