Anticipated 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.