Calculation and Financial Instruments

Code:

1EC101

Acronym:

CIF

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2023/2024 - 1S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Bachelor in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LECO	347	Bologna Syllabus since 2012	1	-	6	42	162

Teaching language

Portuguese

Objectives

- To get the students acquainted with financial mathematics, being able to use it in solving practical financial problems.
- To get students to know a numbero of basic financial instruments, and to use financial calculus to value such instruments.
- To give students the opportunity of using Excel functions to solve problems of financial mathematics.

Learning outcomes and competences

It is expected to endow the students with skills to:
- be able to use financial mathematics in solving practical problems.
- be able to use financial mathematics in some financial instruments.
- be able to use Excel functions to solve problems of financial mathematics.

Working method

B-learning

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

Familiarity with the usage of Excel spreadsheets is recommended.

Program

1. Financial Mathematics
1.1. Fundamentals
1.2. Future value and present vale of a single cash flow
1.3. Nominal and efective interest rates
1.4. Future value and present vale of a series of constant and growing cash flows
1.5. Present value of perpetuities 
1.6. Solving the equivalence equation for other variables: payments and number of periods
1.7. Computation of IRR-Internal Rate of Return and All-In-Cost of Debt

2. Financial Mathematics Applications
2.1. Loan amortizations
2.2. Financial leases
2.3. Bond valuation
2.4. Stock valuation

Mandatory literature

Alves, Carlos; Ribeiro, Cláudia; Farinha, Jorge; Alves, Rui; Cálculo Financeiro Aplicado , Almedina, 2019. ISBN: 978‐972‐40‐7553‐2

Comments from the literature

Material made available to students:
- Slides used in class.
- Sets of practice problems.
- Old tests and exams.

Teaching methods and learning activities

Flipped classroom: With this methodology the student has to prepare before the sessions the materials planned for each session. Therefore, the student will have in class a better grasp of the content of the course and at the same time will have more time to solve cases and exercises in class with the support of the teacher.

Each class will start with a short quiz on the topics covered in the materials. The teacher will then discuss with the class specific and more complex topics and all the questions the students might have. The second part of the class is dedicated to solving problems both with excel or hand calculators.

Software

Socrative - students
Microsoft Excel

keywords

Social sciences > Economics > Management studies

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Teste	90,00
Participação presencial	10,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	123,00
Frequência das aulas	39,00
Total:	162,00

Eligibility for exams

All students enrolled in the course can take the exam.

Calculation formula of final grade

-  assessment is composed of a final exam (weight of 90%) and participation in class quizzes (weight of 10%)
- the class partcipation component is considered either students undertake the normal or recpourse exams.
-  In order to pass the course students must have a score of at least 9,5

Examinations or Special Assignments

N/a.

Internship work/project

N/a.

Special assessment (TE, DA, ...)

According to the rules and regulations uf U.Porto.

Classification improvement

In order to improve the final mark students may resit the final examination.

Observations

- To the tests and exams students should bring a sheet with formulas and a calculator.