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Exam FM – Financial Mathematics
5 sections available · 29 chapters available
Free Exam FM – Financial Mathematics revision notes for SOA (Society of Actuaries) students. Each chapter covers a key topic with worked examples and practice prompts you can take straight into the thinka app.
Time Value of Money
Interest and discount terminology
Solving time value of money problems with simple and compound interest
Converting between interest rates, discount rates, and the force of interest
Writing the equation of value
Annuities/Cash Flows with Non-Contingent Payments
Annuity terminology and definitions
Level annuity, finite term
Level perpetuity
Arithmetic progression annuities (finite term and perpetuity)
Geometric progression annuities (finite term and perpetuity)
Other non-level annuities/cash flows
Loans
Loan terminology and definitions
Solving for a missing loan quantity
Outstanding loan balance
Interest and principal repayment in a payment
Loan refinancing calculations
Bonds
Bond terminology and definitions
Price, book value, and market value
Redemption value and face value
Yield rate
Coupon and coupon rate
Term of bond and timing of a given book value
Price of a callable bond for a minimum yield
General Cash Flows, Portfolios, and Asset Liability Management
Yield curves, rates of return, duration, convexity, and immunization terminology
Duration and convexity of a set of cash flows
Macaulay and modified duration
Approximate change in present value from an interest rate change
Present value using a yield curve from spot and forward rates
Redington and full immunization
Cash flow matching
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