Modelling Techniques in Actuarial Practice - ACS 375

From this course the student will be able to define, recognize, and/or calculate any of the following: bond price, book value, amortization of premium, accumulation of discount, redemption value, par value/face value, yield rate, coupon, coupon rate, term of bond, callable/non-callable bonds, rate of return, forward rates, spot rates, current value, spot rate, forward rate, yield curve, stock price, stock dividend. Derivation, analysis and applications of duration and convexity models for approximating changes in present value and for constructing investment portfolios for immunization and asset-liability management will also be studied. This course will also give an introduction to financial instruments, including derivatives such as options and forward, along with the concept of no-arbitrage.