Financial mathematics course overview
This four module course demonstrates how financial mathematics formulas can be used to conduct detailed analysis on a set of data and variables.
Discounted cash flows
In this first module, we explore the concept of “time value of money”. The module focuses on how to calculate present values and future values using compounding and discounting techniques. Additionally, this module goes on to outline how the present values of annuities, perpetuities and growing perpetuities can be calculated. Each concept is reinforced with practical and applied exercises and case studies. By the end of this module, you will have a solid understanding of how discounted cash flow techniques are used to evaluate future cash flows.
- Understand the concept of the time value of money
- Explain terms such as present value, future value, NPV, DCF, annuities, and perpetuities
- Use DCF techniques to calculate present values
- Calculate the present value of cash flow streams such as annuities and perpetuities
Bond pricing and yields
In this financial mathematics module, we explore bond pricing and yields. The module begins by explaining how to calculate the price of a bond using discounted cash flows. Then, the module goes on to outline how various yields (such as the current yield and the yield to maturity) are calculated. This module also explains the relationship between bond prices and yields as well as how to identify whether a bond is trading at par, at a premium, or at a discount.
Each concept in this module is reinforced with practical and applied exercises and case studies. By the end of this module, you will have a solid understanding of how bonds are priced and yields are calculated.
- Use DCF to find the price of an annual or semi-annual bond
- Calculate the different yields used to assess bond returns
- Understand the relationship between bond prices and yields
- Identify whether a bond is trading at par, premium, or discount
Statistics & financial mathematics
In this module, we explore key statistical measures. The module begins by explaining how to calculate measures of central tendency including the arithmetic mean and expected values. The module then goes on to outline how simple and weighted moving averages are calculated. This module also explains how to calculate different types of statistical dispersion such as range, variance, and standard deviation.
Each concept in this module is reinforced with practical and applied exercises and case studies. By the end of this module, you will have a solid understanding of how to calculate key statistical measures.
- Calculate measures of central tendency including arithmetic mean, weighted mean, WACC, and expected values
- Calculate simple moving and weighted moving averages
- Calculate different types of statistical dispersions such as range, variance, and standard deviation
Covariance, correlation, and regressions
In this financial mathematics module, we examine the mathematical relationship between two variables. The module begins by explaining how covariance and correlation are defined and calculated. The module then moves on to explain how regression analysis is used to estimate the value of one variable based on another. It also explains the regression equation, outlines how to interpret the coefficient of determination, and explains how to access the regression tools in Excel.
Each concept in this module is reinforced with practical and applied exercises and case studies. By the end of this module, you will have a solid understanding of how to calculate and interpret covariance, correlation, and the results of regression analysis.
- Use correlation and covariance to describe the relationship between two variables
- Calculate covariance and correlation using Excel
- Use regression analysis to describe the relationship between two variables
- Undertake regression analysis in Excel and interpret the results
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Who should take this financial mathematics course?
This course is specifically designed for finance professionals working in investment banking, equity research, corporate development, investment management, finance, and accounting.
What You'll Learn
Path to Certification
6 courses from beginner to intermediate level.01Optional
9 courses from beginner to intermediate level.02Required
Take 3 out of 8 courses at an advanced level.03Required
Submit your FMVA®️ checklist and order your certificate.04Required
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Get access to the Global Corporate Finance Society.05Optional
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What Our Students Say
When you're done with this course, you'll be wondering why business schools don't teach like this. CFI has put together real world training to book or academic learning. Content is right to the point and doesn't bore you. It's powerful! If you don't sign up with this course, you'll be sorry! Good luck if you get better training anywhere else! Not only will this make you a better analyst, but you will build upon your business, understand investments, gain management insight and so much more with nothing but personal satisfaction. It's even better than 5 stars!
Thank goodness math and science are my strong suits. But for anyone who isn't strong in maths, I would not deter them from trying this because it is really practically laid out. You can learn from experience and practice. I found great value in this course, and the references to formulas are completely reliable. I've certainly come to trust the quality of the content provided here and can confidently encourage anyone to use this platform.
This Topic was interesting where as a Finance Student it helps in my research paper to draw my assumptions on share and stock price of different companies using statistical tool in excel such as regression, coffecient co-variance analysis and present my data with the help of scattered chart with trend line slopes. which helps the users of my report to understand it easily with any further explaination on my thesis.
This program offers several advantages to students. First, they provide them with a way to earn money while working within a position that is comfortable with accommodating the scheduling needs of students. Additionally, a work-study program can enable a student to gain work experience while they are going to school to further their chances for finding employment after graduation. Finally, a work-study program can help to fill in any financial gaps that are left over after a student utilizes their loans and grants.
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FMVA® Financial Analyst Certification
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