Essential Maths for Financial Markets Masterclass

This course gives the learners a solid foundation in financial mathematics.

The time value of money, compounding and discounting form the initial base. Learners will evaluate bond prices versus yields as well as performing annuity, amortisation and IRR calculations. The principles of statistics are outlined and participants will gain an understanding of arithmetic and geometric means, normal distributions, standard deviation and correlation and their application in financial markets.


This course is suitable for anyone new to financial markets or the financial services industry.

Learning Outcomes

  • Time value of money
  • Compounding and discounting
  • Calculate forward and present values of cash amounts and flow
  • Explain the difference between nominal (BEY) and effective rates
  • Use PV, FV and annuity formulas to perform calculations
  • Translate bond effective yields to a number of payments per year
  • Recognise the properties of a bond
  • Price a coupon bearing bond from a yield
  • Describe how a yield curve is generated
  • Define and calculate each of mean, median and mode
  • Appreciate the value of weighted averages
  • Calculate the geometric mean of a set of percentage returns
  • Recognise the need for distribution theory
  • Define and calculate standard deviation and variance
  • Compare and contrast skewed distributions
  • Examine the NPV and IRR relationship
  • Work through a case study example for IRR
  • Explore the limitations of IRR
  • Understand amortisation principles
  • Rearrange the annuities formula to solve for payments on an amortising loan
  • Use this formula to construct an excel payment schedule
  • Understand correlation principles
  • Calculate covariance and correlation
  • Summarise the importance of correlation calculations in financial markets

Course Content

Unit 1 – Discounting and compounding PV And FV

Unit 2 – Nominal and effective interest rates

Unit 3 – Bond price given yield and yield given price

Unit 4 – Means and geometric means (mode and median)

Unit 5 – Normal distribution and standard deviation

Unit 6 – IRR returns

Unit 7 – Loan amortisation

Unit 8 – Correlation

This Course Includes

  • Learn: 8 micro-learning on-demand videos
  • Check: 8 knowledge checks to validate understanding
  • Apply: 8 hands-on practical exercises and projects
  • Requirements: Access to a computer with an internet connection
  • Accessibility: Access on PC, mobile or TV
  • Certification: Certificate of completion with CPD record


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Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

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We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

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Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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