Department:
Department of Economics
Program:
МА «Финансовая экономика»
Semester:
2
Credits:
2
Course description
This short discipline prepares students for future advanced courses in finance. This discipline is devoted to the basic concepts used in financial mathematics: basic models of the financial calculations, in particular, discounted cash flows (DCF), net present value (NPV), internal rate of return (IRR) models. Knowing these models will help to understand how banks calculate loan payments, which payment schedule is more profitable, and way of calculation investment projects' efficiency or profitability of each money cash flow including cash flow from the ownership of a security. In addition, the course examines random flows of payments — this concept helps to understand the value of derivative securities.