STAT 274
Theory of Interest
Statistics
College of Physical and Mathematical Sciences
Course Description
Theory of interest, annuities, amortization, financial derivatives. Prepares for SOA Exam FM.
When Taught
Fall and Winter
Grade Rule
Grade Rule 8: A, B, C, D, E, I (Standard grade rule)
Min
3
Fixed
3
Fixed
3
Fixed
0
Title
Time Value of Money
Learning Outcome
Recognize, understand, and compute problems relating to time value of money, including simple and compound interest, present and future value, and nominal and effective rates of interest
Title
Annuities
Learning Outcome
Recognize, understand, and compute problems relating to annuities with payments that are not contingent, including annuities-immediate, annuities-due, perpetuity, and arithmetically or geometrically increasing payments.
Title
Loans
Learning Outcome
Recognize, understand, and compute problems relating to loans, including principal, interest, term of loan, outstanding balance, final payment, and amortization.
Title
Bonds
Learning Outcome
Recognize, understand, and compute problems relating to bonds, including price, redemption value, par value, coupon and coupon rate, yield rate, callable and non-callable, and accumulation of discount and premium.
Title
General Cash Flow
Learning Outcome
Recognize, understand, and compute problems relating to general cash flows and portfolios, including yield rate and rate of return, current value, convexity, yield curve, and dividend.
Title
Immunization
Learning Outcome
Recognize, understand, and compute problems relating to immunization, including cash flow matching, full immunization, and Redington immu­nization.
