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Interest-Bearing Securities

Estimated study time: 12 – 19 hours

The Interest-Bearing Securities module offers the learner detailed insight
into the bond market and money market. This seven topic module commences
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
executed? 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 Financial System
  • Pricing of Interest Bearing
  • Money Market Securities
  • How & Where Bonds are Traded
  • Bond Market Securities
  • The Bond Market Trade Cycle
  • The Money Market Trade Cycle