This is a first coursse in the theory and measurement of rates of interest and discount. Topics include accumulated and present value factors, annuities, yield rates, amortization schedules and sinking funds, including continuous cases. This course is a continuation of AcSc 116. Topics include bonds and other securities, duration, immunization and derivatives.
Theory is developed and practical examples are used.
This course introduces the economics of insurance, utility theory, and the application of probability in survival distributions and life tables. The theory of determination of net single premiums for life insurance and annuities is also presented, including continuous cases. An introduction to net annual premiums and net premium reserves. Models are developed for multiple life functions and multiple decrement situations. A review of major current actuarial issues in pension mathematics.