A one-day course covering the essential maths to survive a career in the financial markets and provide a guide of the conventions and practices used in the markets. No prior knowledge of financial mathematics is assumed.
Price per person (Ex. VAT): Provided on request
KEY OUTCOMES
Explain the concept of time value of money and its importance in understanding valuation concepts
Explain the different types of interest and day count conventions and how and when they are used in practice
Calculate discount factors and apply their functions to valuation of money market and fixed income instruments
Map out a variety of cash flows (both conventional and non-standard) and calculate their valuations
COURSE OVERVIEW
This course will be of benefit to those who need to understand the key mathematical concepts and conventions of finance, either for the first time or if you want to boost your mathematics skills and confidence. The training covers the fundamental mathematical skills required to evaluate most financial products and investment cash flows, developing all the basic ideas and concepts from afresh.
Introduction to interest rate mathematics
What is interest?
2. The nature of interest rates
3. From a borrower’s and investor’s perspective
4. Interest rate components
5. Interest rate references and where to obtain the rates
Calculating interest rate payments
6. Simple vs. compound interest
7. From compound interest to continuously compounded rates
8. Exponentials and logarithms
9. Day count fractions and conventions – a lesson in market practices
10. Market conventions, by geography and instrument
11. Converting from one basis to another
Time value of money
The concept of time value of money
Future value
12. For single and multiple periods – the power of compounding
13. PV as the reciprocal of future value
14. Calculating and using discount factors
Present value
15. Relationship between PV and interest rates
16. Timing matters
17. Frequency and periodicity and how to transform interest rates
18. Discount factors with default risk
19. Present value of an annuity and the concept of duration
20. Computing duration
21. Using duration in practice
If you have any questions about this course, please feel free to get in touch via email on info@thezishi.com or by calling +44 (0)204 551 8568 (please choose option 2).
A one-day course covering the essential maths to survive a career in the financial markets and provide a guide of the conventions and practices used in the markets. No prior knowledge of financial mathematics is assumed.
Price per person (Ex. VAT): Provided on request
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