Financial Math for Actuaries: From Loans to Bonds to Immunization

In preparation for SOA Exam FM / CAS Exam 2, the Financial Math for Actuaries: From Loans to Bonds to Immunization course will give you opportunities to better understand the time value of money through these learning activities: Performing calculations related to loan payments, loan balances, loan amortization tables and loan refinancing Calculating the price of bonds with various features, developing bond amortization tables and effective yield rates Calculating the net present value of cash flows, and developing internal rates of return Studying the term structure of interest rates, and calculating the duration/convexity of assets whose value is sensitive to interest rates

• Calculate loan payments based on the loan term and interest rate
• Calculate the outstanding balance of a loan by the prospective or the retrospective method
• Create an amortization table that breaks down loan payments into principal and interest, and showing the outstanding loan balance
• Calculate new loan payments for a refinanced loan
• Calculate the price of a bond including any call features
• Develop an amortization table for a bond
• Define and calculate the NPV and IRR of a project
• To define and calculate the duration and convexity of an asset
• To define spot / forward rates and determine the present and accumulated values of cash flows using spot / forward rates

• Calculating the present value or accumulated value of payments using rates of interest, rates of discount and the force of interest.
• Calculating the present value or accumulated value for sequences of non-contingent payments (annuities).
• Knowing how to reflect payment timing, longevity, and arithmetic/geometric payment changes in the annuity valuation process.