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ACT SCI 303

THEORY OF INTEREST

3 credits.

Time value of money; interest compounded discretely and continuously; accumulated and present value of payments; loans and sinking funds; annuity and bond valuation; interest rate term structure; duration, immunization and interest rate swaps.

Prerequisites & course information

Requisites: MATH 213 , 222 , or declared in the Business Exchange program Course Designation: Core GenEd - Mathematics & Quantitative Reasoning Repeatable for Credit: No Last Taught: Fall 2026 Learning Outcomes: 1. Understand and illustrate the impact of the time value of money on decisions both in their professional and personal life. Audience: Undergraduate 2. Differentiate between the different types of measures of rate of return and return on investment and calculate those rates given a set of cash flow assumptions. Audience: Undergraduate 3. Compare and contrast the dynamics of key financial instruments including annuities, bonds and loans as well as calculate the price and other significant values of these instruments. Audience: Undergraduate 4. Demonstrate the importance of immunizing asset and liability portfolios against changes in interest rates and describe methods of immunization. Audience: Undergraduate Learning Outcomes: 1. Understand and illustrate the impact of the time value of money on decisions both in their professional and personal life. Audience: Undergraduate 2. Differentiate between the different types of measures of rate of return and return on investment and calculate those rates given a set of cash flow assumptions. Audience: Undergraduate 3. Compare and contrast the dynamics of key financial instruments including annuities, bonds and loans as well as calculate the price and other significant values of these instruments. Audience: Undergraduate 4. Demonstrate the importance of immunizing asset and liability portfolios against changes in interest rates and describe methods of immunization. Audience: Undergraduate

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