MACT4013 (Actuarial Practice 1)
OverviewThe aim of this module is to provide a grounding in the principles of modelling as applied to financial mathematics – focusing particularly on deterministic models which can be used to model and value known cashflows. Indicative topics covered by the module include data and basics of modelling, theory of interest rates, equation of value and its applications. This module will cover a number of syllabus items set out in Subject CM1 – Actuarial Mathematics published by the Institute and Faculty of Actuaries.
This module appears in:
Method of assessment
70% examination, 30% coursework
Students on the programmes listed in section 7 are provided with the study notes published by the Actuarial Education Company for Subject CM1 – Actuarial Mathematics.
The following may be used for background reading:
Adams, A. T., et al, Investment mathematics (Wiley 2003)
McCutcheon, J. J., Scott, W. F., An introduction to the Mathematics of Finance (Institute of actuaries, Faculty of Actuaries in Scotland 1986)
Garrett S, An introduction to the Mathematics of Finance; a deterministic approach 2nd edition (Institute and faculty of Actuaries 2013)
The intended subject specific learning outcomes. On successfully completing the module students will be able to:
1. describe, interpret and discuss the theories on interest rates;
2. demonstrate the capability to deploy established approaches accurately to analyse and solve problems using a basic level of skill in calculation and manipulation of interest rate theories and using models to value cashflows;
3. demonstrate a basic appreciation of recent developments in financial mathematics and the links between the theory of financial mathematics and their practical application.
The intended generic learning outcomes. On successfully completing the module students will be able to:
1. apply a logical mathematical approach to solving problems;
2. demonstrate skills in written communication;
3. demonstrate skills in the use of relevant information technology;
4. demonstrate skills in time management, organisation and studying.