Teaching plan for the course unit

 

 
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General information

 

Course unit name: Financial Mathematics

Course unit code: 364564

Academic year: 2025-2026

Coordinator: Maria Teresa Marmol Jimenez

Department: Department of Economic, Financial and Actuarial Mathematics

Credits: 6

Single program: S

 

 

Estimated learning time

Total number of hours 150

 

Face-to-face and/or online activities

60
 

-  Lecture with practical component

Face-to-face

  

46
 

-  IT-based class

Face-to-face

  

14

Supervised project

40

Independent learning

50

 

 

Competences / Learning outcomes to be gained during study

 

   -

CG5 - Ability to work in a team (capacity to collaborate with others and contribute to a common project, capacity to work in cross-disciplinary and multicultural teams).
   -

CG8 - Capacity to communicate in English and/or other foreign languages orally and in writing, comprehension skills, and mastery of specialized language.
   -

CG10 - Capacity to apply ICTs to professional activities.
   -

CE9 - Ability to use quantitative methods to solve real problems in different business areas.

Learning objectives

 

Referring to knowledge

— Understand the concept and theory of interest.

 

— Understand the most common financial transactions.

 

— Be able to apply mathematical skills to understand money growth.

 

 

Teaching blocks

 

1. Introduction: some general ideas

1.1. Financial transactions

1.2. Equilibrium in a financial transaction

1.3. Price in a common financial transaction

2. Financial arrangements

2.1. Definition

2.2. Simple interest

2.3. Compound interest at a constant rate

2.4. Compound interest with variable rates

2.5. Simple discounting

3. Annuities

3.1. Present value of a set of capital amounts

3.2. Value of a set of capital amounts on a given date

3.3. Annuities

• Definition
• Classification
• Model annuity
   — Present value 
   — Future (accumulated) value
• Level annuity
• Non-level annuities or varying annuities
   — Annuities with payments in geometric progression
   — Annuities with payments in arithmetic progression
• Perpetuities

4. Loans

4.1. Definition

4.2. Classification

4.3. Loans repaid by a single payment at the end of the loan

4.4. Interest-only loan (non-amortising)

4.5. Amortising loan with level payments

5. Bonds

5.1. Introduction: definitions and notation

5.2. Coupon bonds

5.3. Zero-coupon bonds: treasury bills

 

 

Teaching methods and general organization

 

The subject is taught through lectures with a practical component, complemented by problem-solving sessions.

In total, the course comprises 30 two-hour lectures (60 hours overall), organised as follows:

      • 46 hours: Presentation of the theoretical content required to meet the course objectives. Practical content and financial exercises are worked through in class. Additional practical exercises are proposed for completion. Students work individually or in small groups.


      • 14 hours: The class is divided into two working groups. Practical content and financial exercises are carried out in computer rooms.

 

 

 

Official assessment of learning outcomes

 

There are two mid-term exams during the semester.

— First mid-term exam: Units 1, 2 and 3 (40%)
— Second mid-term exam: Units 4 and 5 (60%)

The final grade is calculated on the basis of the two mid-term exams.

In order to pass the subject a minimum final grade of 5 must be achieved, and a minimum mark of 3 on each mid-term exam is required.

 

Examination-based assessment

Students who do not sit the second mid-term examination will be deemed to have withdrawn from continuous assessment and to have opted for single assessment.

Students opting for single assessment must sit a written examination covering the entire syllabus, including both theoretical and practical components. The date of the examination is set by the Academic Board. A grade of 5 or higher is required to pass the subject.

 

Repeat assessment

Students who do not pass either the continuous or single modes of assessment are entitled to repeat assessment. The resit adheres to the same format as that of the single assessment exam and takes place on the date established for that purpose by the Academic Board. A grade of 5 or higher is required to pass the subject.