Syllabus: M 329F     THEORY OF INTEREST

Prerequisite and degree relevance: M408D, M308L, M408L, or M408S with a grade of at least C-, or consent of instructor.  This course covers the interest theory portion of the SOA/CAS Financial Mathematics exam (FM/2); this should be about 75-80% of the material on this professional exam, with the balance of the exam testing knowledge of elementary financial derivatives.   Topics include nominal and effective interest and discount rates, general accumulation functions and force of interest, yield rates, annuities including those with non-level payment patterns, amortization of loans, sinking funds, bonds, duration, and immunization.