Texas A&M University
Math 325 – Syllabus
Fall 2015
Math 325 – The Mathematics of Interest
Catalog Description: (CREDIT 3.0) The mathematical theory associated with interest; annuities; internal rate of
return; coupon bonds; valuation of non-callable bonds; yield of maturity; interest rate sensitivity; duration and
convexity; reinvestment risk; total return; compound return; STRIPS; yield curve; short selling; hedge ratio; bond
swaps. Prerequisites: MATH 142, MATH 147, MATH 151 or MATH 171; junior classification .
Course Objectives: Upon completion of this course, students will understand and be able to solve problems
involving the time value of money, various measurements of interest and discount, annuities, amortization,
sinking funds, bonds, yield rates, the term structure of interest rates, duration, convexity, and immunization.
Instructor Information
Name
Rashi Arora
Office
BLOCKER 208
e-mail*
rashiarora15@tamu.edu
Office hours
Wed : 9-10 AM, 1.30 – 2.30 PM, BLOC 208, or by appointment
www.math.tamu.edu/~rashi.arora
**Please check my webpage regularly. All the announcements and necessary
documents will be posted here.
*Please check your email regularly. You are responsible for any information sent via email. When you send an email, please
include your Full Name, Course Number (Math 325) and section number, in the message.
Webpage* *
Class, Textbook and Homework
Class (Time & Place)
Section 500 : TR 12:45 – 2:00 PM, BLOC 121
Section 501 : TR 2:20 – 3:35 PM, MPHY 213
The Theory of Interest, 3rd ed., by Stephen G.
Recommended Texts
Kellison.Published by McGraw-Hill. ISBN-13:
978-0-07-338244-9, ISBN-10: 0-07-338244-2.
Required Calculator
BA II Plus or BA II Plus Professional Edition.
Grading Scheme
Exam 1 (Week of 28th Sept)
15%
Exam 2 (Week of 19th Oct)
17%
Exam 3 (Week of 16th Nov)
20%
Exam 4 (3rd Dec)
23%
Final Exam
25%
Letter Grade
A ³ 90% ; 80 £ B < 90% ; 70 £ C < 80% ; 60 £ D < 70% ; F < 60%
Texas A&M University
Math 325 – Syllabus
Fall 2015
Exams: You will have four in-class exams and a Final. The exact days for in-class exams will be announced in
class closer to the respective weeks. It will most probably be the Thursday of the week mentioned. Every exam
will be cumulative (except the 1st one). In-class exams will be about 40-45 minutes each. We will have a lecture
before or after each exam. Your Final exam dates and times are as follows:
Section 500 : 16th Dec, 8:00 – 10:00 AM , Bloc 121
Section 501 : 16th Dec, 1:00 – 3:00 PM, MPHY 213
Suggested Homework: The essence of mathematics and this course is practice. The more you practice, the
better you'll get. I'll give you practice problems but they will nto be graded.
Class Participation and Attendance: Class participation and attendance is strongly recommended. I strongly
suggest you make every effort to not miss a single lecture.
Mobile Phones and Laptops: Please keep your mobile phones OFF or on SILENT, so that the class is not
disturbed if the phone goes off. Please do NOT turn on your laptops (or any other electronic devices) during the
class unless asked to do so.
Make-up policy: Make-ups for exams will be given only if the student can provide a documented
University-approved excuse (http://student-rules.tamu.edu/). According to Section 7.3 of the University Student
Rules, for an absence to be considered excused, “the student must notify his or her instructor in writing
(acknowledged e-mail is acceptable) prior to the date of absence if such a notification is feasible. In cases where
advance notification is not feasible (e.g accident or emergency), the student must provide notification by the end
of the second working day after the absence. The notification should include an explanation of why notice could
not be sent prior to the class.”In addition (and also in accordance with University Student Rules), a written
excuse must be presented upon return to class. Specifically, in case of illness too severe or contagious to
attend class or in case of injury, students are required to obtain a confirmation note from a healthcare
professional affirming date and time of medical office visit regarding the illness or injury and confirming
the need of absence (with permission to verify) before a make-up will be given. The Texas A&M Explanatory
Statement of Absence will NOT be accepted. An absence for a non-acute medical service does not constitute as
an excused absence. Students with an official University excused absence are permitted to make up work only
for the dates of absence. Moreover, (and again in accordance with University Student Rules ), if an instructor has
a regularly scheduled make-up exam, students are expected to attend unless they have a University approved
excuse.
It is the student's responsibility to contact me within the proper time period, in order to schedule make-up
assignments.
If the class is officially canceled for any reason, you can expect that the assignments due/taken on the missed
class day will be due/taken the next time class meets.
Scholastic Dishonesty: Copying work done by others, either in-class or out of class, is an act of scholastic
dishonesty and will be prosecuted to the full extent allowed by University policy.
"An Aggie does not lie, cheat, or steal or tolerate those who do."
Please refer to the Honor Council Rules and Procedures, available at the Office of Aggie Honor System for more
information. (http://aggiehonor.tamu.edu).
Texas A&M University
Math 325 – Syllabus
Fall 2015
Copyright policy: All printed materials disseminated in class or on the web are protected by copyright laws.
One copy (photocopy or download from the web) is allowed for personal use. Multiple copies or sale of any of
these materials is strictly prohibited.
Students with Disabilities: The American with Disabilities Act (ADA) is a federal anti-discrimination statute
that provides comprehensive civil rights protection for persons with disabilities. Among other things, this
legislation requires all students with disabilities be guaranteed a learning environment that provides for
reasonable accommodation of their disabilities.
If you believe you have a disability requiring an accommodation, please contact Disability Services, in Cain
Hall, Room B118, or call 845-1637. For additional information, visit http://disability.tamu.edu .
Tentative Schedule: This schedule is subject to change, depending on the pace of the class.
Week of Monday
Aug 31
Sept 7
Sept 14
Sept 21
Sept 28
Oct 5
Oct 12
Oct 19
Oct 26
Nov 2
Nov 9
Nov 16
Nov 23
Nov 30
Dec 3
Sections Covered
1.2 – 1.6
1.6 – 1.10
1.10 – 2.7
3.2 – 3.7
3.8, Exam 1(covering Chapters 1 – 3), 4.2 – 4.4
4.5 – 4.9, 5.1 – 5.3
5.4 – 5.8
Exam 2 (covering chapters 4, 5), 6.1 – 6.3
6.4 – 6.7
6.8 – 6.10, 7.1 – 7.3
7.4 – 7.7, 10.2 – 10.3
10.4 – 10.5, Exam 3 (covering chapters 6, 7)
11.2 – 11.3, Thanksgiving Thursday!
11.4 – 11.8
Exam 4 (covering chapters 10, 11)