Financial Calculus

Presentation

In this curricular unit, financial calculation techniques are taught in order to provide the student with skills for the practical execution of the financial calculation, namely:

• Know and understand the basic concepts of financial calculation;
• Obtain upgrade and capitalization calculation practice;
• Know how to calculate the value of an income;
• Know how to determine loan repayments;
• Know how to analyze the various sources of financing of the company.

Part of this Programme

Economics

Level of Qualification|Semesters|ECTS

| Semestral | 5

Year | Type of course unit | Language

1 |Mandatory |Português

Code

ULHT32-154

Recommended complementary curricular units

The Curricular Unit appears in the 1st curricular year of the course, only needing the High School education in Mathematics and Portuguese.

Prerequisites and co-requisites

n/a

Professional Internship

Não

Syllabus

1. Introductory Concepts

1.1. Time, capital and interest;

1.2. Interest rate and discount;

1.3. Present value and accumulated value

2. Capitalization schemes;

2.1. Simple interest scheme;

2.2. Compound interest rate

3. Equivalence of Capital;

3.1. Equation of value;

3.2. Single capital;

3.3. Average maturity;

3.4. Average rate

4. Equivalence of rates;

4.1. Nominal rates and effective or real rates;

4.2. Equivalents of interest rates;

4.3. Instantaneous rate of capitalization;

4.4. TAEG 

5. Incomes;

5.1. Notion and classification;

5.2. Incomes with constant terms;

5.2.1. Whole incomes;

5.2.2. Fractional incomes;

5.2.3. Perpetual incomes

6. Loans;

6.1. Classic loans;

6.1.1. Generic concepts;

6.1.2. Categorization as to the period of repayment and payment of interest;

6.2. Bond loans;

6.2.1. Generic concepts;

6.2.2. Modalities;

6.2.3. Debt analysis: effective rate, average life and "duration";

6.3. Specialized credit operations;

6.3.1. Location;

6.3.2. ALD;

6.3.3. Factoring

Objectives

Knowledge, skills and competences to be developed by students:

• Know and understand the basic concepts of financial calculation;
• Obtain capitalization calculation practice;
• Know how to calculate the value of an income;
• Know how to determine loan repayments;
• Know how to analyze the various sources of financing for companies.

Teaching methodologies and assessment

The curricular unit is taught in theoretical-practical classes of 120 minutes. In the classes the following pedagogical methods are applied:

• Exposition of the theoretical framework;
• Formalization and mathematical demonstration;
• Performing exercises;

The assessment consists of the following moments and their respective weights:

• 2 Knowledge Assessment Tests: 60% [30% each Test];
• Short Paper: 30%;
• Continuous assessment: 10%.

References

• Mata, Luís Reis, Elementos de estudo (Sebentas) disponibilizados nas aulas
• Matias, Rogério - Cálculo financeiro - Teoria e Prática. 6ª Edição. Lisboa: Escolar Editora, 2018. ISBN 9789725925393
• Mateus, Alves - Cálculo Financeiro. 5ª Edição, Lisboa: Ed. Sílabo, 2002. ISBN 9789726181989
• Mateus, Alves - Exercícios Práticos de Cálculo Financeiro, 3ª Edição, Lisboa: Ed. Sílabo, 2004. ISBN 9789726181989

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