Financial Mathematics Exercises and Solutions

This textbook is designed to facilitate a thorough learning for students of financial mathematics. It includes exercises and theoretical questions across seven chapters: Interest Theory, Financial Flows and Annuities, Profitability and Risk of Financial Operations, Portfolio Analysis, Bonds, Modigliani-Miller Theory, and Brusov-Filatova-Orekhova Theory. The last two chapters are dedicated to modern theories of capital structure, including problems and tasks. More than 130 detailed solutions are provided to help students solve the assignments in the textbook.

This textbook is suitable for undergraduate and graduate students in all financial and economic fields, including finance and credit, accounting and auditing, taxes, insurance, and international economic relations. It is also useful for professionals in financial and economic specialties, including financial analysts, as well as anyone interested in mastering quantitative methods in finance and economics. 

The theory of interest.- Financial flows.- Profitability and risk of a financial transaction.- Portfolio Analysis.- Bonds.- The Modigliani—Miller Theory.- The theory of Brusov — Filatova — Orekhova (theory of the BFO).

Peter Brusov is professor at the Financial University under the Government of the Russian Federation in Moscow (Russia). He has been a visiting Professor of Northwestern University (USA), Cornell University (USA), Osaka City University (Japan) and National Chung Cheng University (Taiwan) among other places. He is a co-author of the famous Brusov-Filatova-Orekhova theory, which replaced the well-known Modigliani-Miller theory. He is the author of over 550 research publications including nine monographs, numerous textbooks and articles.

Tatiana Filatova is professor at the Financial University under the Government of the Russian Federation in Moscow (Russia). In the past 20 years, she has been Dean of the faculties of financial management, management, state and municipal government at the Financial University. She is a co-author of the famous Brusov-Filatova-Orekhova theory, which replaced the well-known Modigliani-Miller theory. Tatiana Filatova is the author of over 300 research publications including eight monographs, numerous textbooks and articles.

Natali Orekhova is professor at the Financial University under the Government of the Russian Federation in Moscow (Russia).   She is a co-author of the famous Brusov-Filatova-Orekhova theory, which replaced the well-known Modigliani-Miller theory. Natali Orekhova  is the author of over 150 research publications including six monographs, numerous textbooks and articles.