Concordia University - ACTU 256: Mathematics of Finance

This course, ACTU 256: Mathematics of Finance, introduces students to the core mathematics underlying compound interest and financial mathematics. Students will explore foundational topics, including measuring simple and compound interest, present and future value, nominal and effective rates, and the forces of interest. Emphasis is placed on practical applications, covering equations of value, annuities (including continuous and variable annuities), and cash flow analysis. Key financial instruments like bonds and securities are also examined in detail, focusing on bond pricing, yield rates, premium and discount, and callable and serial bonds.

The course further investigates amortization schedules, sinking funds, and asset/ liability management techniques. Applications extend to modern financial instruments, inflation, duration, and term structure of interest rates. By the end of the course, students will have a solid grasp of interest theory concepts used in valuing cash flows and investment income. Prerequisite or concurrent enrollment in MATH 264 is required, and permission from the department is necessary for registration. Students with credit in MAST 335 cannot receive credit for ACTU 256.