Summary |
There is a concise but thorough treatment of the basic compound interest functions, nominal rate of interest, and the yield (or internal rate of return) and there are many examples on discounted cash flow. Also discussed are applications of the theory to capital redemption policies (including a discussion of reinvestment rates), the valuation of stock market securities (with allowance for income tax, capital gains tax and index-linking), and consumer credit calculations. The final chapter provides a simple introduction to stochastic interest rate models.
An introduction to the mathematics of finance has been especially written for a wide audience – actuaries (whether in insurance companies, investment or pensions consultancy), investment analysts, accountants, stockbrokers and economists. This book will be essential reading for students preparing for the professional examinations of the institute and faculty of actuaries.
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