The course aims to introduce the main quantitative models for the analysis, valuation and management of financial assets, and provides the fundamental elements for the quantitative study of bond finance. The student will have the opportunity to learn the appropriate terminology and concepts for understanding and using the tools of financial mathematics. The critical ability to describe and develop basic financial models will be stimulated, with particular emphasis on managing the risk-return profile of a financial asset. In parallel, the course develops the main quantitative methodologies useful as a basis for participation in advanced finance courses.

At the end of the course the student will have to demonstrate that he is able to carry out operations related to the financial instruments introduced, and to master the theoretical concepts presented in the course.

Contents: Basic principles of financial calculation: financial laws, bonds, annuities and depreciation, internal rate of return, financial equivalence theory. Financial contracts and market structure: non-arbitrage prices, forward interest rate structure, duration, variable rate contracts.

Refences: The teaching material of the course will be made available by the teacher and will consist of lecture notes. Students with knowledge of Italian language can also refer to the following text:

G. Castellani, M. De Felice, F. Moriconi, Manuale di Finanza. I. Interest rates. Mortgages and bonds, il Mulino, Bologna 2005.

Exam: written. 10 multiple choice questions (40%), 5 exercises (60%)

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