-
Study
-
UCAS Clearing 2024
- Clearing Courses
- The Clearing Process
- UCAS Tariff Points
- Clearing 2024 FAQs
- Confirmation
- Clearing Campus Tours and Accommodation Viewings
-
Undergraduate
- Search for a Course
- Undergraduate Open Day & Events
- Application Guides
- Northumbria University UCAS Exhibitions
- Foundation Years
- Undergraduate Fees & Funding
- School & College Outreach
- Continuing Professional Development
-
Postgraduate
- Postgraduate Study Degree
- Postgraduate Research Degrees
- Postgraduate Open Days and Events
- Postgraduate Fees & Funding
- Flexible Learning
- Thinking about a Masters?
- Continuing Professional Development
- Change Direction
-
Student Life
- The Hub - Student Blog
- Accommodation
- Life in Newcastle
- Support for Students
- Careers
- Information for Parents
- Students' Union
- Northumbria Sport
-
-
International
International
Northumbria’s global footprint touches every continent across the world, through our global partnerships across 17 institutions in 10 countries, to our 277,000 strong alumni community and 150 recruitment partners – we prepare our students for the challenges of tomorrow. Discover more about how to join Northumbria’s global family or our partnerships.
View our Global Footprint-
Applying to Northumbria
- European Union
- Our London Campus
- Northumbria Pathway
- International Events
- Entry Requirements and Country Representatives
- Regional Offices
-
Northumbria Language Centre
- Faculty Requirements
- Acceptable English Requirements
- Pre-sessional English Language and Study Skills
- Academic Language Skills Programmes (ALS)
-
International Fees, Funding & Scholarships
- International Undergraduate Fees
- International Undergraduate Funding
- International Masters Fees
- International Masters Funding
- International Postgraduate Research Fees
- International Postgraduate Research Funding
- International Money Matters
-
Life at Northumbria
- International student support
- Careers
-
International Mobility
- Current Northumbria Students
- Incoming Exchange Students
-
-
Business
Business
The world is changing faster than ever before. The future is there to be won by organisations who find ways to turn today's possibilities into tomorrows competitive edge. In a connected world, collaboration can be the key to success.
More on our Business Services -
Research
Research
Northumbria is a research-rich, business-focused, professional university with a global reputation for academic quality. We conduct ground-breaking research that is responsive to the science & technology, health & well being, economic and social and arts & cultural needs for the communities
Discover more about our Research -
About Us
-
About Northumbria
- Our Strategy
- Our Staff
- Place and Partnerships
- Student Profiles
- Alumni Profiles
- Leadership & Governance
- Academic Departments
- University Services
- History of Northumbria
- Contact us
- Online Shop
-
-
Alumni
Alumni
Northumbria University is renowned for the calibre of its business-ready graduates. Our alumni network has over 241,000 graduates based in 178 countries worldwide in a range of sectors, our alumni are making a real impact on the world.
Our Alumni - Work For Us
What will I learn on this module?
The module introduces the concepts and terminology of financial mathematics and modelling in finance. You will learn about
the properties of interest rates and the key tools of compound interest functions for modelling a range of annuity schemes. The module develops models for life insurance and endowment schemes and enables the students to analyse the behaviour of share prices. The generalised cash-flow model is introduced to describe financial transactions. The student learns how to develop simple models of financial instruments such as bonds and shares.
Outline Syllabus
Interest: Simple and compound interest. Effective and nominal interest rates. Force of interest. Interest paid monthly. Present values. Cash flows and equations of value.
Annuities: Annuities with annual payments, and payments more regularly. Payments in arrear and in advance. Deferred and varying annuities, annuities payable continuously. Loans, loan structure and equal payments.
Discounted cash flow: Generalised cash flow model. Project appraisal at fixed interest rates. Comparison of two investment projects. Different interest rates for lending and borrowing. Payback periods. Measurement of investment performance.
Investments: Types of investments. Valuation of fixed interest securities and uncertain income securities. Real rates of interest. Effects of inflation. Capital gains tax.
Arbitrage in financial mathematics: Forward contracts. Calculating delivery price and delivery value of forward contracts using arbitrage-free pricing methods. Discrete and continuous time rates.
Life Insurance: Term insurance and whole life insurance. Curtate future lifetime. Life tables, expectation of life. Annual and monthly premium. Endowments. Payment at death.
Stochastic Interest Rates: Varying interest rates. Independent rates of return. Expected values. Application of the lognormal distribution. Brownian motion.
How will I learn on this module?
You will learn through a combination of lectures and skills periods focussing on problem solving where you will be able to obtain help. Lectures allow students to experience and understand the formalism of the required mathematical techniques as well as include relevant examples and guided in-class exercise-solving sessions between more theoretical expositions. Students have an opportunity to enhance their understanding of the subject through exercises which promote both independent learning and problem solving within peer groups. The exercise classes will also be an opportunity to present you with open research problems, and will strengthen your transferable skills and employability. Northumbria’s computer labs and facilities are fully equipped with the latest industry-standard software such as Matlab, Excel and others, which will be used to support independent study and learning. Further technology-enhanced resources such as e-lecture notes, seminar sheets with answers and solution and past-paper questions will be provided via the e-learning portal.
How will I be supported academically on this module?
In addition to academic contact with the module team during lectures and exercise classes, students are encouraged to develop their curiosity by making direct contact with the module team either via email or the open-door policy operated throughout the programme. Students will also be regularly referred to supporting resources including relevant texts and relevant multimedia materials. References to these resources will be made available through the e-learning portal and in lectures and seminars.
What will I be expected to read on this module?
All modules at Northumbria include a range of reading materials that students are expected to engage with. Online reading lists (provided after enrolment) give you access to your reading material for your modules. The Library works in partnership with your module tutors to ensure you have access to the material that you need.
What will I be expected to achieve?
Knowledge & Understanding:
1. Apply equation of value in the context of the discounted cash flow model (KU1);
2. Compose appropriate models for valuating securities (KU2, KU3);
3. Understand and apply the theory of interest rates (KU3).
Intellectual / Professional skills & abilities:
4. Perform project appraisal and evaluate the performance of the project/company on a stock market (IPSA1, IPSA2, IPSA3).
Personal Values Attributes (Global / Cultural awareness, Ethics, Curiosity) (PVA):
5. Increases proficiency and independence in exploiting rigorous mathematical techniques to study economical and financial problems (PVA1, PVA3, PVA4).
How will I be assessed?
SUMMATIVE
1. Coursework (30%) – 1, 3, 4, 5
2. Examination (70%) – 1, 2, 3, 5
FORMATIVE
Exercise Classes – 1, 2, 3, 4, 5
Students will be assessed by two formal assessments with weights 30% (coursework) and 70% (exam) respectively. The examinations will cover all topics from the module.
Formative feedback will be provided on seminar work which will include problems designed to aid student understanding.
Pre-requisite(s)
None
Co-requisite(s)
None
Module abstract
The module will introduce you to the concepts and terminology of financial mathematics and modelling in finance. You will learn properties of interest rates and the key tools of compound interest functions for modelling a range of annuity schemes. The module develops models for life insurance and endowment schemes and enables the students to analyse the behaviour of share prices. The generalised cash-flow model is introduced to describe financial transactions. You will learn how to develop simple models of financial instruments such as bonds and shares, enhancing skills that are essential to your future careers and/or postgraduate study. You will be assessed by course work in the form of individual assignment (30%) and by a written, closed-book examinations (70%). The examination will cover all topics from the module.
Course info
UCAS Code G100
Credits 20
Level of Study Undergraduate
Mode of Study 3 years Full Time or 4 years with a placement (sandwich)/study abroad
Department Mathematics, Physics and Electrical Engineering
Location City Campus, Northumbria University
City Newcastle
Start September 2024 or September 2025
All information is accurate at the time of sharing.
Full time Courses are primarily delivered via on-campus face to face learning but could include elements of online learning. Most courses run as planned and as promoted on our website and via our marketing materials, but if there are any substantial changes (as determined by the Competition and Markets Authority) to a course or there is the potential that course may be withdrawn, we will notify all affected applicants as soon as possible with advice and guidance regarding their options. It is also important to be aware that optional modules listed on course pages may be subject to change depending on uptake numbers each year.
Contact time is subject to increase or decrease in line with possible restrictions imposed by the government or the University in the interest of maintaining the health and safety and wellbeing of students, staff, and visitors if this is deemed necessary in future.
Useful Links
Find out about our distinctive approach at
www.northumbria.ac.uk/exp
Admissions Terms and Conditions
northumbria.ac.uk/terms
Fees and Funding
northumbria.ac.uk/fees
Admissions Policy
northumbria.ac.uk/adpolicy
Admissions Complaints Policy
northumbria.ac.uk/complaints