BPF_AFMT Financial Mathematics

Faculty of Economics and Administration
Spring 2026
Extent and Intensity
2/2/0. 8 credit(s). Type of Completion: zk (examination).
In-person direct teaching
Teacher(s)
Axel Alejandro Araneda Barahona, Ph.D. (lecturer)
Andrea Rigamonti, B.Sc., M.Sc., Ph.D. (lecturer)
Guaranteed by
Andrea Rigamonti, B.Sc., M.Sc., Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Kristina Charvátová
Supplier department: Department of Finance – Faculty of Economics and Administration
Timetable
Mon 14:00–15:50 P312, except Mon 16. 2., except Mon 6. 4.
  • Timetable of Seminar Groups:
BPF_AFMT/01: Mon 16:00–17:50 P312, except Mon 16. 2., except Mon 6. 4., A. Araneda Barahona, A. Rigamonti
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 37 student(s).
Current registration and enrolment status: enrolled: 33/37, only registered: 0/37, only registered with preference (fields directly associated with the programme): 0/37
fields of study / plans the course is directly associated with
Abstract

This course is an introduction to financial mathematics. It introduces the most important concepts and principles in finance and the basic mathematical tools used by financial mathematicians and quantitative finance practitioners.

The main objectives of the course are:

  • understanding the fundamentals of financial mathematics
  • understanding the logic of interest rates
  • understanding the implication of time value of money
  • the ability to price and manage fixed income instruments
  • gain familiarity with basic mathematical computations required for quantitative financial management 
  • applying acquired knowledge to the related areas which are not discussed within this course
Learning outcomes

Student will be able to:

  • understand and apply the concept of time value of money
  • make decisions on time-diverging cash flows
  • interpret an informative content of interest rates
  • understand and manage the consequences of variations in the yield
  • effectively work with annuities and perpetuities
  • perform financial computations requiring basic matrix operations
Key topics

Lectures:

  1. Basic mathematics notions
  2. Simple and compound interest
  3. Continuously compounded interest
  4. Discount interest
  5. Effective rates and period conversion
  6. Time value of money
  7. Net Present value and Internal rate of return
  8. Annuities and perpetuities
  9. Further types of annnuities and perpetuities
  10. Fixed income instruments pricing and management
  11. Basic matrix operations for finance
Study resources and literature
    required literature
  • GUTHRIE, Gary and Larry LEMON. Mathematics of Interest Rates and Finance. Pearson New International Edition, 2013. ISBN 978-1-292-03983-1. info
  • DEFUSCO, Richard Armand; Dennis W. MCLEAVEY; Jerald E. PINTO and David E. RUNKLE. Quantitative investment analysis. Third edition. Hoboken: Wiley, 2015, xx, 609. ISBN 9781119104223. info
    recommended literature
  • ADAMS, James and Donald J. SMITH. Fixed income analysis. Fifth edition. Hoboken, New Jersey: Wiley, 2022, xx, 882. ISBN 9781119850540. info
Approaches, practices, and methods used in teaching
Lectures. During the seminars we will solve exercises on the topics discussed during the lectures.
Method of verifying learning outcomes and course completion requirements

The final grade is determined through a midterm test and a final exam after the end of the course. They will consist of practical exercises. Passing the midterm is not mandatory but students who don't will have to be tested on the entire program during the final exam.

The final grade scale is the following:

  • A= 92 – 100 %
  • B= 84 – 91 %
  • C= 76 – 83 %
  • D= 68 – 75 %
  • E= 60 – 67 %
  • F= less than 60 %

If a student will cheat during the midterm or the final written test, the teacher will interrupt the exam and it will be graded as failed.

Alternate completion
The same above-mentioned requirements for completing the course apply to students studying abroad (e.g., Erasmus) with an individual study plan (ISP), except for the compulsory attendance of seminars. Students are required to contact the lecturer to discuss the activities replacing the seminars attendance.
Language of instruction
English
Further Comments
Study Materials
The course is taught annually.
The course is also listed under the following terms Spring 2018, Spring 2019, Spring 2020, Spring 2021, Spring 2022, Spring 2023, Spring 2024, Spring 2025.
  • Enrolment Statistics (recent)
  • Permalink: https://is.muni.cz/course/econ/spring2026/BPF_AFMT