- Docente: Mauro Cerè
- Credits: 7
- SSD: SECS-S/06
- Language: Italian
- Teaching Mode: Traditional lectures
- Campus: Bologna
- Corso: First cycle degree programme (L) in Business Economics (cod. 0891)
Course contents
1. Simple interest and simple discount. Rate of interest. Compound interest: accumulated and discounted values. Compound interest at changing interest rates. Values for fractional interest periods. Continuous interest.
2. Annuities: definitions and notations. Accumulated and discounted values of an annuity. Due and deferred annuities. Annuities vhere payments vary in terms of a constant difference or in terms of a constant ratio. Fractional and continuous annuities. Perpetuities.
3. Sinking funds
4. Amortization of a debt: definitions and terminology. Outstanding principle. Kinds of amortization. Value of a debt. Makeham's formula.
5. Bonds: introduction and terminology. Purchase price to yield a given investment rate. Premium and discount. The yield rate. Expected life and median expectation of life of a bond. Achard's formula. Value of a bond. Duration of a bond.
Office hours
See the website of Mauro Cerè