| MATHEMATICS (TURKISH, PHD) | |||||
| PhD | TR-NQF-HE: Level 8 | QF-EHEA: Third Cycle | EQF-LLL: Level 8 | ||
| Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
| MAT4061 | Mathematics for Finance and Management | Fall | 3 | 0 | 3 | 6 |
| The course opens with the approval of the Department at the beginning of each semester |
| Language of instruction: | En |
| Type of course: | Departmental Elective |
| Course Level: | |
| Mode of Delivery: | Face to face |
| Course Coordinator : | Dr. Öğr. Üyesi TUĞCAN DEMİR |
| Course Objectives: | The objective is to provide an understanding of the fundamental concepts of financial mathematics and see how these relate to financial modelling. The course aims at introducing concepts like reserving, valuation, pricing, duration calculation, asset/liability management, investment income, capital budgeting and valuing contingent cash flows as well as giving the student some competence in comparing investment alternatives and an undrstanding of utility theory. |
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The students who have succeeded in this course; The student will be able to calculate the time value of money, the present and accumulated values of annuities, will know about different types of annuities and lending and amortizations schedules. The student will also be able to evaluate investment alternatives and calculate breakeven points and carry sensitivity anlayses. |
| Time value of money, types of interest, calculation of cashflows, annuities certain, deferred annuities, borrowing and lending models, yield rates, amortization schedules, calculation of internal and external rate of returns, comparison of investment alternatives, breakeven and sensitivity analyses. |
| Week | Subject | Related Preparation | |
| 1) | Time value of money, interest, cashflows. | ||
| 2) | Nominal and effective rates of interest and discount. | ||
| 3) | Calculation of present and future values of cashflows. | ||
| 4) | Annuities certain, present value, accumulated value. Deferred annuities. Loan schedules. | ||
| 5) | More general annuities. Continuous annuities, increasing annuities | ||
| 5) | Yield rates. Discounted cash flow analysis. Borrowing and lending models. | ||
| 7) | Pay back models. | ||
| 8) | Amortization and sinking fund models. | ||
| 9) | Applications of money-time relationships. | ||
| 10) | Calculation of present and future and annual worths under different return assumptions. | ||
| 11) | Internal and external rates of return and applications. | ||
| 12) | Comparing Investment Alternatives | ||
| 13) | Breakeven and Sensitivity Analysis | ||
| 14) | Utility Theory | ||
| Course Notes: | The Theory of Interest, Stephen G. Kellison, Irwin Series |
| References: | An Introduction to the Mathematics of Finance, J.J. Mc Cutcheon, W.F. Scott, Butterworth, Heinmann. Engineering Economy, 13th Edition, William G. Sullivan, Elin M. Wicks, James T. |
| Semester Requirements | Number of Activities | Level of Contribution |
| Attendance | 14 | % 10 |
| Laboratory | % 0 | |
| Application | % 0 | |
| Field Work | % 0 | |
| Special Course Internship (Work Placement) | % 0 | |
| Quizzes | 2 | % 10 |
| Homework Assignments | % 0 | |
| Presentation | % 0 | |
| Project | % 0 | |
| Seminar | % 0 | |
| Midterms | 2 | % 40 |
| Preliminary Jury | % 0 | |
| Final | 1 | % 40 |
| Paper Submission | % 0 | |
| Jury | % 0 | |
| Bütünleme | % 0 | |
| Total | % 100 | |
| PERCENTAGE OF SEMESTER WORK | % 60 | |
| PERCENTAGE OF FINAL WORK | % 40 | |
| Total | % 100 | |
| Activities | Number of Activities | Duration (Hours) | Workload |
| Course Hours | 14 | 3 | 42 |
| Laboratory | 0 | 0 | 0 |
| Application | 0 | 0 | 0 |
| Special Course Internship (Work Placement) | 0 | 0 | 0 |
| Field Work | 0 | 0 | 0 |
| Study Hours Out of Class | 14 | 2 | 28 |
| Presentations / Seminar | 0 | 0 | 0 |
| Project | 0 | 0 | 0 |
| Homework Assignments | 0 | 0 | 0 |
| Quizzes | 2 | 5 | 10 |
| Preliminary Jury | 0 | ||
| Midterms | 2 | 5 | 10 |
| Paper Submission | 0 | ||
| Jury | 0 | ||
| Final | 1 | 10 | 10 |
| Total Workload | 100 | ||
| No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
| Program Outcomes | Level of Contribution |