Important external links
Link to the Sample SoA FM exam problems
Link to the Sample SoA FM exam solutions
Link to the Online FM exam
Class 1: January 22nd
Orientation.
Class 2: January 24th
Accumulation and amount functions. Simple interest.
Slides: Sections 1.2-4 and 1.7-8.
Class notes: The amount and accumulation functions.
Class 3: January 27th
The discount function. Simple discount.
Class notes: Review. The discount function.
Class 4: January 29th
The effective discount rate. Compound interest.
Slides: Sections 1.6, 1.5, and 1.9.
Class notes: The effective discount rate.
Homework #1 -- due on Thursday, February 6th
Class 5: January 31st
Compound discount.
Class 6: February 3rd
Net present value.
Class 7: February 5th
Nominal interest rates.
Slides: Sections 1.10, 1.11, and 1.12.
Class notes: NPV (contโd). Nominal interest rates.
Homework #1 -- Solutions
Homework #2 -- due on Thursday, February 13th
Class 8: February 7th
Nominal discount rates. The constant force of interest.
Class notes: The constant force of interest.
In-Term One -- practice problems
In-Term One -- practice solutions
Quiz #1 -- due on Tuesday, February 11th
Class 9: February 10th
The time-varying force of interest.
Class notes: The time-varying force of interest.
Quiz #1 -- Solutions
Class 10: February 12th
Problem-solving session.
Homework #2 -- Solutions
Quiz #2 -- due on Tuesday, February 18th
Class 11: February 14th
In-term exam I
In-Term One -- Solutions
Class 12: February 17th
Inflation.
Equations of value.
The yield rate.
Class notes: Inflation. Equations of value.
Homework #3 -- due on Tuesday, February 25th
Class 13: February 19th
Dollar-weighted yield rates.
Class notes: Yield rates. Dollar-Weighted Yield Rates.
Quiz #2 -- Solutions
Class 14: February 21st
Time-weighted yield rates.
Class 15: February 24th
Annuities immediate.
Class notes: Annuuities immediate.
Class 16: February 26th
More on annuities immediate.
Homework #3 -- Solutions
Class 17: February 28th
Annuities due.
Class 18: March 2nd
Non-integral terms. Deferred annuities certain.
Class 19: March 4th
Perpetuities.
Class 20: March 6th
Outstanding loan balances.
Homework #4 -- due on Friday, March 13th
Class 21: March 9th
Non-level annuities.
Class 22: March 11th
Annuities with payments in geometric progression.
Class 23: March 13th
UT closed and no class due to COVID-19.
Homework #4 -- Solutions
In-Term Two -- Topics
Sample In-Term Two -- Problems
Sample In-Term Two -- Solutions
Class 24: March 30th
Getting used to Zoom
Mock In-Term Two -- Problems
Mock In-Term Two -- Solutions
Class 25: April 1st
In-term exam II
In-Term Two -- Solutions
Class 26: April 3rd
Annuities with payments in arithmetic progression.
Class 27: April 6th
Continuously paying annuities.
Class 28: April 8th
Amortization method.
Homework #5- due Wednesday, April 15th
Class 29: April 10th
The sinking-fund method.
Class 30: April 13th
Bond pricing.
Class 31: April 15th
The premium-discount formula.
Class 32: April 17th
The bond amortization schedule.
Homework #5 -- Solutions
Class 33: April 20th
Callable bonds.
Quiz #6 -- due on Wednesday, April 22nd
Homework #6 -- due on Monday, April 27th
Class 34: April 22nd
More on the book value and callable bonds.
Quiz #6 -- Solutions
Class 35: April 24th
The dividend-discount model. On arbitrage.
Class 36: April 27th
The term structure of interest rates.
Homework #6 -- Solutions
Quiz #7 -- due on Thursday, April 30th
Homework #7 -- due on Monday, May 4th
Class 37: April 29th
Implied forward rates.
Quiz #8 -- due on Wednesday, May 6th
Class 38: May 1st
Swaps on interest rates.
Old class notes: Interest-rate swaps (only pp.5-8 are relevant).
Duration.
Quiz #7 -- Solutions
In-Term Three -- Topics
Sample In-Term Three -- Problems
Sample In-Term Three -- Solutions
Class 39: May 4th
More on duration.
Homework #7 -- Solutions
Class 40: May 6th
Convexity.
Immunization.
Quiz #8 -- Solutions
Mock In-Term Three -- Problems
Mock In-Term Three -- Solutions
Class 41: May 8th
In-term exam III
In-Term Three -- Problems and solutions