FINANSIJSKA MATEMATIKA NA FINANSIJSKOM TRŽIŠTU

After completion of this course the student will be able to: 1. Appoint and define the basic concepts in the financial market. 2. Apply the equivalence principle and the method of discounting and prolongation to short-term and long-term bonds, shares and to testing of investment profitability. 3. Define the effective interest rate on bank deposits and loans and compare it with the internal rate of return from the calculative point of view. 4. Generalize the discount factor for the case of variable interest rates and apply it in finance. 5. Define the term contracts and determine their prices. 6. Apply a portfolio analysis and create different models in insurance. 7. Prepare verbal and written presentation from financial mathematics in the financial market.