Mathematical Interest Theory
Published on 19. February 2009
Book
Hardback
490 pages
978-0-88385-754-0 (ISBN)
Description
Mathematical Interest Theory gives an introduction to how investments vary over time, and this book provides a solid foundation for readers embarking on actuarial careers.. This is done in a mathematically precise manner, but the emphasis is on practical applications and giving the reader a concrete understanding as to why the various relationships should be true. Modern financial topics including arbitrage, options, futures, and swaps are introduced. Along with an understanding of probability,this book provides a solid foundation for readers embarking on actuarial careers. It also includes detailed instruction on how to use the Texas Instruments BA II Plus and BA II Plus Professional calculators. This text is among the recommended reading options for the Society of Actuaries/Casualty Actuarial Society FM/2 exam.
Reviews / Votes
This is an excellent book on interest theory, one of the four book recognized by the Society of Actuaries and Casualty Acruarial Society as a basis of study for the interest theory component of their joint FInancial Mathematics (FM) exam. What I particularly like about Mathematical Interest Theory is that many problems are intrinsically multi-stepped requiring use of several core functions. By providing a multitude of superior problems, the authors are able to familiarize the student not only with core actuarial function, but also develop their skills in studying the interaction between these functions and real-world problems."" - Russell Jay Hendel, UMAP Journal""Students pursuing an actuarial career as well as those seeking a mathematically based finances course stand to benefit from this informative, up-to-date, and above all, skillfully written treatise. Instructors and students of interest theory owe Daniel and Vaaler a debt of gratitude for their fine efforts."" - Susan Staples, Texas Christian University
""We use the Vaaler and Daniel text as our primary learning resource for actuarial science majors as they prepare for the SOA FM/CAS2 financial mathematics exam. Each concept is followed by several illustrative and detailed examples that help students master the big ideas in interest theory."" - Mark Maxwell, Director of Actuarial Science, Robert Morris University
More details
Series
Language
English
Place of publication
Washington
United States
Target group
College/higher education
Professional and scholarly
Dimensions
Height: 235 mm
Width: 158 mm
Thickness: 29 mm
Weight
780 gr
ISBN-13
978-0-88385-754-0 (9780883857540)
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Schweitzer Classification
Persons
Leslie Jane Federer Vaaler received her Masters and PhD degrees from Princeton University. She is currently at the University of Texas at Austin where she is Buck Consultants Associate Director of Actuarial Studies and Senior Lecturer in Mathematics. She has been teaching actuarial studies since 2000. James Daniel is director of Actuarial Studies at the University of Texas at Austin. In Spring 2005, he was named to UT-Austin's Academy of Distinguished Teachers. Although his main activity is now undergraduate teaching, he previously was very active in research (primarily in numerical optimization and the numerical solution of ordinary differential equations).
Content
An introduction to the Texas Instruments BA II Plus; 1. The growth of money; 2. Equations of value and yield rates; 3. Annuities; 4. Annuities with different payment and conversion periods; 5. Loan repayment; 6. Bonds; 7. Stocks and financial markets; 8. Arbitrage, the term structure of interest rates, and derivatives; 9. Interest rate sensitivity; Appendices: A. Some useful formulas; B. Answers to end of chapter problems; Bibliography; Index.