Syllabus Information

5.1. Methodological overview

The learning-teaching process designed for the subject "Financial Valuation" with 6 ECTS credits is based on the distribution of 150 hours of student work in actual 60 hours face and 90 non-actual hours.

Specifically, the 60 classroom hours are divided into 30 hours of participatory lectures and 30 hours of practices solving problems and cases on the blackboard and with the computer. As a consequence, the development of actual classrooms is structured around the fundamental points that are described in the following section.

5.2. Learning tasks

- Participatory lecture sessions:

In these sessions the lecturer exposes and explains the basic concepts of financial transactions as well as the financial laws that allow assessing these operations with the objective that the student calculates and reflects on the cost / return of different financial operations by solving simple theoretical-practical cases in the classroom. At these sessions, student participation will be enhanced to discuss the most important concepts analyzed in each session.

The student will have available the bibliography recommended for each of the units studied and is waiting for him to review it in detail before attending the corresponding session.

- Solution problem Sessions and blackboard cases and at computer rooms:

Every week, in addition to the participatory lecture session, students will have a session of problems and cases solution. In connection with these problem-solving sessions and cases, students are expected particularly active due to the split of groups.

- Sessions of Practical Works (P6 type)

In case of the existence of these sessions, students will present and defense the proposed practical cases.

5.3. Syllabus

Part 1: Fundamentals of Financial Valuation

Unit 1. Fundamentals of Financial Valuation

1.1. Financial capital and financial operation

1.2. Rational behavior comparing some financial capital

1.3. Financial Law and the effect of compounding periods 

Part 2: Valuation of Short-Term Financial Operations

Unit 2. Short-Term Financial Operations

2.1. Equivalent sums with simple financial law

2.2. Bank discount

2.3. Factoring

Unit 3. Valuation of Financial Operations in Short-Term Public Debt Markets

3.1. Characteristics of financial operations in short-term public debt markets

3.2. Treasury Bills: primary and secondary markets

3.3. Repo operations

 Part 3: Assessment of annuities

Unit 4. Annuities

4.1. Concept and elements of an annuity

4.2. Constant and immediate annuities

4.3. Advance and deferred annuities

4.4. Arithmetical progression annuities

4.5. Geometrical progression annuities

4.6.  General annuities

Part 4: Assessment of Long-term Financial Operations

Unit 5. Deposits

5.1. Introduction to deposits

5.2. Annuity due deposits

5.3. Immediate deposits

Unit 6. Loans

6.1. Introduction to loans

6.2. Method of constant principal payments

6.3. French amortization method

6.4. Variable installment loans

6.5. Variable rate loans

6.6. The effective rate of loans

5.4. Course planning and calendar

The calendar of actual sessions will be announced on the website of the center; the presentation of works and other activities will be communicated by the teacher in class and Moodle.

5.5. Bibliography and recommended resources

[BB: Bibliografía básica / BC: Bibliografía complementaria]

• [BB] Cruz Rambaud, Salvador : Introducción a las matemáticas financieras / Salvador Cruz Rambaud, María del Carmen Valls Martínez . - 3ª ed. Madrid : Pirámide, D.L. 2014
• [BB] Ferruz Agudo, Luis. Valoración financiera / Luis Ferruz Agudo, José Luis Sarto Marzal . Zaragoza : Copy Center, cop. 2016
• [BB] Fuente Sánchez, Damián de la. Valoración de operaciones financieras / Damián de la Fuente Sánchez, Inmaculada Pra Martos . - 1ª ed., 1ª reimp. Madrid : Editorial Universitaria Ramón Areces, D.L. 2011