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
For further CPE information, please read before purchasing:
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
10 courses from beginner to intermediate level.02Required
Take 3 out of 9 courses at an advanced level.03Required
Submit your FMVA®️ checklist and order your certificate.04Required
Join Our Community
Get access to the Global Corporate Finance Society.05Optional
How the Certification Works
What Our Students Say
Really useful content & concepts that I'm very pleased to now have a good grasp of. The progression through the modules is well paced but I found it jumps a bit quickly when you get to the correlation & regression module. Easy enough to just go through it again but it would be helpful if the concepts & derivation were explained a bit more comprehensively.
Great organization of the content. Most of the parts were basic and really well explained. However, more detailed explanations could be given on the statistics part of the course. The speed of the same can be moderated too. At one point the concepts felt really heavy. Apart from that, it was really engaging and refreshed the concepts.
Great and good variety with an in-depth calculational intricate course.
Before the course my concept clarity of NPV foundation of corporate finance was very theoretical, post completing the course and doing exercises I am now confident of my concepts I would highly recommend anyone taking core courses to first complete the foundation courses as they actually drill the concepts in the head.
Frequently Asked Questions
FMVA® Financial Analyst Certification
Become a Financial Modeling and Valuation Analyst (FMVA)® by completing all required courses in accounting, finance, modeling, Excel, presentations, and strategy. From beginner to advanced courses you will have the complete training you need to become a world-class financial analyst.