Applied Financial Mathmatics in Excel

Transcription

1 Applied Financial Mathmatics in Excel This in-house course can also be presented face to face in-house for your company or via live in-house webinar The Banking and Corporate Finance Training Specialist

2 Course Objectives This one-day workshop explores: Financial concepts underpinning a range of models Model design standards Cash flow methods Fixed income models Derivative concepts Basic statistics Course Overview The workshop is highly practical and each session begins with a discussion of each technique followed by practical exercises. At the end of the workshop, delegates will understand how to apply financial mathematics to Excel spreadsheets. Course Content Basic Model Design Model design refresher Importance of layout, colours and organisation Useful Excel techniques and shortcuts Exercise: reconstructing a model Single Cash Flows Basic concepts Time value of money Available Excel functions Simple and compound interest Nominal and effective rates Effect of compounding Conversions and comparisons Effect of changing interest rates on annuities Amortisation methods Exercise: calculating payments and amortisation for structured loans Multiple Cash Flows Basic concepts Common NPV/IRR mistakes Effect of changing interest rates Exercise: constructing and valuing a complex cash flow with multiple rates Depreciation Depreciation methods Available functions Exercise: depreciating assets and comparing results Fixed Income Bond cash flows refresher Yield calculations Relationship between yield and price Clean and dirty prices with accrued interest Modelling duration and modified duration Convexity Uses of duration and convexity

3 Zero coupons Coupon days Exercise: modelling bond risks Options Options pricing Components of options price Payoffs Generating pricing models (Binomial, Black Scholes etc.) Put call parity Greeks Exercise: constructing a binomial and a Black Scholes model Basic Statistics Useful statistical functions Descriptive statistics Distribution shapes Sampling Variance and standard deviation Statistics add-in Analysing a dataset Exercise: reviewing a dataset and presenting conclusions Course Summary This workshop focuses on the underlying mathematics techniques which underpin project finance, energy, leasing and other analysis models. Rather than using a financial calculator such as an HP12C, the workshop demonstrates how to apply financial mathematics to Excel effectively. Starting with a review of model design, the workshop introduces present and future values and shows how these basic concepts can be used to solve a range of financial mathematics problems. The workshop ranges over complex cash flows, depreciation, structured amortisation, fixed income, derivatives and data analysis. Workshop Teaching Method The programme is taught using formal lectures combined with practical and interactive case studies and exercises to reinforce the concepts covered in each teaching session. Emphasis is placed on delegates gaining practical, hands-on experience of building financial models in Excel. Comprehensive product notes and modelling software will be provided for future reference. Delegates receive a full pack of Excel software and templates for future reference as part of the course materials. Delegate Profile

4 This is a course for analysts and practitioners who want to use Excel as a tool to assist with the decision making process. Senior financial professionals using Excel spreadsheets who should attend include: Financial analysts CFO's Financial controllers Analysts Accountants Credit managers Treasury managers Risk managers Middle office staff Mergers, acquisitions and buyout specialists and corporate finance staff Delegate Level Delegates will be expected to have finance knowledge and a working knowledge of Excel, including: Opening and closing Excel files Excel screen menu and standard toolbar Auto fill Moving around a worksheet Moving around the sheets in a workbook Creating files Deleting files and individual sheets Changing column width and row height Entering simple formulas Entering labels Cell referencing Centring titles and merging cells Simple cell formatting Number formats Changing font sizes and colours Copy, cut and pasting cell contents Inserting graphic objects Custom views Previewing worksheets Printing documents and ranges Redcliffe has provided in-house training for the following companies:

5 Tailored Learning All of our training courses can be tailored to suit your company s exact training needs. We will work closely with you to help develop a training programme with content that is unique for your organisation. Please us on enquiries@redcliffetraining.co.uk for more information E-Learning This course can also be presented as a bespoke e-learning programme created by you to fit your exact requirements.