Interest-Bearing Securities

The Interest-Bearing Securities module offers the learner detailed insight into the bond market and money market. This seven topic module com- mences with some background to the South African financial system and the components that comprise this system. The focus then shifts to the time value of money and the concepts of present value versus future value.

Discount and yield calculations and the inverse relationship between the yield and price of an interest-bearing security are examined in this material, before the local money market and bond exchange (BESA) are introduced.

How are bonds issued and traded? How are money market transactions ex- ecuted? This module answers these and other questions the learner may have about interest-bearing securities. Finally, the learner is introduced to the bond trade cycle and the money market trade cycle.

Topics

  • The South African Fin System
  • Pricing of Interest Bearing Sec
  • Money Market Securities
  • How & Where Bonds are Traded – Bond Market Securities
  • The Bond Market Trade Cycle
  • The Money Market Trade Cycle