Week 1 - Theoretical & Practice
Introduction to Financial Mathematics and Excel Applications
Topic Definition
Financial mathematics comprises the mathematical and quantitative methods used in financial decision-making. This week outlines the theoretical and technical framework of the course and focuses on how to optimize Excel, an indispensable tool for financial analysis, for financial applications.
By the end of this week, students will be able to:
Explain the fundamental concepts of financial mathematics and its role within the financial system. (Bloom: Understand)
Identify the mathematical variables and tools frequently used in financial problems. (Understand)
Explain the strategic role of Excel in data processing and financial modeling processes. (Understand)
Utilize essential Excel financial functions (PV, FV, RATE, NPER, etc.) required for financial analysis. (Apply)
Create simple financial calculations in a structured format within a spreadsheet. (Create)
CLO Alignment
CLO1, CLO6
Week 2 - Theoretical & Practice
Time Value of Money
Topic Definition
The time value of money is the most fundamental principle of financial theory. This week covers techniques for comparing value changes over time, based on the reality that a lira held today is more valuable than a lira to be held in the future.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Explain the concept of the time value of money in light of variables such as opportunity cost and inflation. (Bloom: Understand)
Calculate the future value of a given cash flow. (Apply)
Calculate the present value of future cash flows by discounting. (Apply)
Adapt Excel's time value functions (FV, PV, NPER, RATE) to complex problems. (Apply)
Determine the most rational option by comparing the values of different investment alternatives. (Evaluate)
CLO Alignment
CLO2, CLO6
Week 3 - Theoretical & Practice
Simple and Compound Interest Calculations
Topic Definition
Interest calculations are the fundamental determinant in every field of finance, from capital markets to personal banking. This week focuses on the mathematical differences between simple and compound interest, periodic interest applications, and the concept of "effective interest rate," which plays a critical role in investment decisions.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Explain the logic of simple interest and its areas of application. (Bloom: Understand)
Calculate the effect of compound interest on capital accumulation. (Apply)
Compare and analyze different types of interest (annual, monthly, daily, etc.). (Analyze)
Calculate the difference between nominal and effective interest rates to determine the actual cost of return. (Apply)
Create dynamic interest tables and return projections using Excel. (Create)
CLO Alignment
CLO2, CLO6
Week 4 - Theoretical & Practice
Discounting Methods and Valuation of Cash Flows
Topic Definition
At the heart of financial decision-making lies the discounting of future cash flows to the present. This week examines how cash flows occurring at different times (whether irregular or annuities) can be consolidated at a single point (present value) based on the time value of money, as well as the critical impact of the discount rate on valuation.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Explain the concept of discounting and its role in the valuation of cash flows. (Bloom: Understand)
Calculate the net present value of irregular cash flow streams. (Apply)
Analyze the sensitivity of an investment's present value to changes in discount rates. (Analyze)
Compare multiple investment projects using discounting methods to make rational choices. (Evaluate)
Create flexible discounting models in Excel capable of managing variable cash flows. (Create)
CLO Alignment
CLO2, CLO4
Week 5 - Theoretical & Practice
Annuities and Loan Repayment Schedules
Topic Definition
An annuity is a sequence of equal cash flows occurring at regular intervals. This week covers installment payment plans—the foundation of personal and corporate finance—the mathematical structure of annuities, and how to transform loans into amortization schedules within an Excel environment.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Explain the concept of an annuity within the framework of present and future value logic. (Bloom: Understand)
Prepare loan repayment schedules (amortization tables) using financial functions (PMT, IPMT, PPMT). (Create)
Calculate regular installment amounts based on different interest rates and maturity structures. (Apply)
Compare fixed-installment loans with alternative financing options in terms of cost. (Analyze)
Create flexible repayment models in Excel that incorporate scenarios such as early repayment or variable interest rates. (Create)
CLO Alignment
CLO2, CLO6
Week 6 - Theoretical & Practice
Bond Valuation Mathematics
Topic Definition
Bonds are fixed-income securities issued by companies or governments to borrow funds. This week examines the calculation of the present value of a bond's cash flows (coupon payments and principal repayment), the inverse relationship between market interest rates and bond prices, and the concept of "yield to maturity" (YTM).
Weekly Learning Outcomes
By the end of this week, students will be able to:
Explain the logic of bond pricing and its fundamental components (coupon, par value, maturity). (Bloom: Understand)
Analyze whether a bond will trade at a premium or a discount by using the relationship between the coupon rate and the market interest rate. (Analyze)
Calculate bond values and rates of return using financial functions (PRICE, YIELD). (Apply)
Calculate the yield to maturity (YTM) as the internal rate of return for a bond. (Apply)
Build bond valuation models in Excel based on coupon payment frequencies. (Create)
CLO Alignment
CLO3, CLO6
Week 7 - Theoretical & Practice
Applied Financial Modeling and Case Studies
Topic Definition
This week serves as a practical workshop where all concepts covered in the first six weeks (time value, interest, annuity, and bond valuation) are integrated with real-world data. The focus is on transforming theoretical knowledge into concrete financial solutions, designing complex Excel models, and interpreting financial outputs.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Apply the topics covered during the first six weeks in an integrated manner through real-world case studies. (Bloom: Apply)
Develop comprehensive and multi-variable financial models using current market data. (Create)
Analyze the margins of error in financial models and interpret the results from a professional perspective. (Evaluate)
Transform financial calculations into a decision-support mechanism by creating alternative scenarios. (Create)
CLO Alignment
CLO1–CLO6
Week 8 - Theoretical & Practice
Stock Valuation Models
Topic Definition
Stock valuation is the process of determining the "intrinsic value" of a stock based on a company's future dividend payments or cash flows. This week focuses on analyzing fundamental valuation approaches, growth models, and the discrepancies between market price and intrinsic value within Excel.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Explain the fundamental approaches used in stock valuation (e.g., Dividend Discount Model). (Bloom: Understand)
Mathematically apply constant and variable growth models (such as the Gordon Growth Model). (Apply)
Analyze the impact of company growth rates on stock price. (Analyze)
Calculate the intrinsic value of a company to establish a reference point for investment decisions. (Apply)
Build a comprehensive stock valuation model in Excel that includes various growth scenarios. (Create)
CLO Alignment
CLO3, CLO6
Week 9 - Theoretical & Practice
Capital Budgeting and Investment Decisions
Topic Definition
Capital budgeting is the process of evaluating long-term investment projects for businesses. This week examines the key decision criteria (NPV, IRR, Payback Period) that measure the financial feasibility of an investment project and how to optimize these criteria in Excel.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Explain the concepts of Net Present Value (NPV) and Internal Rate of Return (IRR). (Bloom: Understand)
Calculate the payback period for investment projects. (Apply)
Analyze the value-creation potential of a project by comparing different capital budgeting techniques. (Analyze)
Evaluate how to use financial ratios when choosing between investment projects. (Evaluate)
Build comprehensive capital budgeting models in Excel that include cash flow projections. (Create)
CLO Alignment
CLO4, CLO6
Week 10 - Theoretical & Practice
Risk and Return Analysis
Topic Definition
In financial markets, "return" is the reward for an investment, while "risk" is the probability that this reward will not be realized. This week analyzes how uncertainty is measured quantitatively, the role of historical data in forecasting, and how investors balance their return expectations with risk levels using Excel.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Define the concept of risk from both statistical and financial perspectives. (Bloom: Understand)
Calculate the expected return of financial assets. (Apply)
Calculate risk measures such as variance and standard deviation using Excel. (Apply)
Analyze the risk-return trade-off relationship both graphically and numerically. (Analyze)
Interpret investment preferences by comparing the risk profiles of different investment instruments. (Evaluate)
CLO Alignment
CLO5
Week 11 - Theoretical & Practice
Portfolio Mathematics
Topic Definition
The principle of "not putting all your eggs in one basket" is the foundation of modern portfolio theory. This week covers how risk can be reduced through diversification, the correlation between assets, and how to construct "optimal" portfolio combinations with the aid of Excel.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Explain the mathematical impact of diversification strategies on portfolio risk. (Bloom: Understand)
Calculate portfolio returns through asset weighting. (Apply)
Calculate portfolio risk (standard deviation) using covariance and correlation matrices. (Apply)
Analyze the contribution of correlation between assets to the diversification effect. (Analyze)
Determine the optimal portfolio that provides the highest return at a targeted risk level using the Excel "Solver" add-in. (Evaluate)
CLO Alignment
CLO5, CLO6
Week 12 - Theoretical & Practice
Financial Functions and Advanced Excel Applications
Topic Definition
Financial modeling requires more than just using basic functions; it demands the ability to make data dynamic and analyzable. This week focuses on Excel's data management capabilities, advanced financial functions, and the processes for building decision-support models.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Apply advanced Excel financial functions (such as XNPV, XIRR, CUMPRINC, CUMIPMT) to complex datasets. (Apply)
Build multi-variable models using Data Tables and the Scenario Manager tool. (Create)
Monitor the impact of input changes on the outputs within financial models. (Analyze)
Design modular and professional "Decision Support Systems" to solve complex financial problems. (Create)
Create error-checking mechanisms to test the accuracy and consistency of financial outputs. (Evaluate)
CLO Alignment
CLO6, CLO7
Week 13 - Theoretical & Practice
Sensitivity Analysis and Financial Simulations
Topic Definition
Financial forecasts are always subject to uncertainty. This week covers sensitivity analysis, which seeks answers to "what-if" questions, and financial simulation techniques that measure how data reacts under different scenarios. The impact of critical variables in a model on the final results is quantified and visualized.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Conduct single and two-way sensitivity analyses in Excel (using Data Tables). (Apply)
Identify the "critical success factors" (the most sensitive variables) in a financial model. (Analyze)
Evaluate financial risks under different economic conditions (optimistic, pessimistic, base case). (Evaluate)
Enter the basics of Monte Carlo logic to simulate the impact of random variables on a financial model. (Create)
Interpret financial decisions based on simulation results generated under alternative assumptions. (Evaluate)
CLO Alignment
CLO5, CLO7
Week 14 - Theoretical & Practice
Integrated Financial Modeling and Project Presentations
Topic Definition
This is the final week of the term. Students synthesize all techniques learned throughout the semester (time value, valuation, portfolio, risk analysis, and simulation) to solve a complex financial decision problem end-to-end. The focus is on creating a financially rigorous, professional-grade financial report and presentation.
Weekly Learning Outcomes
By the end of this week, students will be able to:
Develop a comprehensive and professional financial model for a realistic case study. (Create)
Interpret and evaluate financial analysis results in an executive summary format. (Evaluate)
Prepare professional-level reports by visualizing financial data. (Create)
Develop analytical, evidence-based recommendations for complex financial decisions. (Create)
Effectively present financial modeling results to an academic and professional audience. (Evaluate)
CLO Alignment
CLO1–CLO8
