Interest Theory and Applications RISK 201 (3)

Measurement of interest, present value. Equations of value. Annuities. Loans and amortization schedules. Bonds and other securities. Cash flows: yield rates, duration, convexity, immunization. Yield curves: spot rates, forward rates. Interest rate swaps. Prerequisite: MATH 152 with a minimum grade of C; or MATH 155 or MATH 158, with a grade of at least B. Recommended: RISK (or ACMA) 101 or RISK 102. Students with credit for ACMA 201 or ACMA 210 may not take this course for further credit. Quantitative.