396 pages | 36 B/W Illus.
Financial Mathematics for Actuarial Science: The Theory of Interest is concerned with the measurement of interest and the various ways interest affects what is often called the time value of money (TVM). Interest is most simply defined as the compensation that a borrower pays to a lender for the use of capital. The goal of this book is to provide the mathematical understandings of interest and the time value of money needed to succeed on the actuarial examination covering interest theory
1. Overview and Mathematical Prerequisites. 2. Measuring Interest. 3. Solving Problems in Interest. 4. Annuities. 5. Amortization Schedules and Sinking Funds. 6. Yield Rates. 7. Bonds. 8. Exact Asset Matching and Swaps. 9. Interest Rate Sensitivity. 10. Determinants of Interest Rates.