Financial Mathematics for Actuaries: Updated Edition

Financial Mathematics for Actuaries: Updated Edition

<b>Financial Mathematics for Actuaries: Updated Edition</b> is an <i>introductory textbook</i> on the mathematics of interest rates. It is written at a level of rigor required of students who major in actuarial science and prepares them for further analysis of financial instruments. This book emphasizes an <i>intuitive treatment of the mathematics of finance and insurance</i>, with a particular focus on applications. Students will find many <i>illustrative examples</i> that apply mathematical techniques to financial products and personal financial management. <P>For this latest updated edition, a whole section in the chapter on bond management has been revised, extended and placed under a new heading called <i>Immunization Strategies</i>. <P><br><b>Contents</b><br> About the Authors v <br> Preface to the Updated Edition vii <br> Preface to the 1st Edition ix <br> List of Mathematical Symbols xi <br><br> Chapter 1 Interest Accumulation and Time Value of Money 1<br> Chapter 2 Annuities 39<br> Chapter 3 Spot Rates, Forward Rates and the Term Structure 73<br> Chapter 4 Rates of Return 99<br> Chapter 5 Loans and Costs of Borrowing 141<br> Chapter 6 Bonds and Bond Pricing 181<br> Chapter 7 Bond Yields and the Term Structure 207<br> Chapter 8 Bond Management 239<br> Chapter 9 Stochastic Interest Rates 285<br> Appendix A Review of Mathematics and Statistics 307<br>