SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Perform bond market calculations 
SAQA US ID UNIT STANDARD TITLE
13399  Perform bond market calculations 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is for people who are new entrants into the bond market environment who are able to perform the basic computational techniques employed in the bond market.

The qualifying learner is capable of:
  • Determining the price of a bond
  • Analysing the factors impacting on the price of a bond
  • Explaining and calculating the total return concept
  • Assessing various measures of price sensitivity of a bond 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    The learner is required to work within a treasury or investment environment and to understand the commercial objectives of the operation in which they work. It is essential that learners are competent in mathematics at a level four on the NQF. 

    UNIT STANDARD RANGE 
    The context of this unit standard is within a treasury or investment environment. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Determine the price of a bond 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The typical cash flows of a bond are correctly described. 

    ASSESSMENT CRITERION 2 
    2. The present value of a bond is correctly calculated. 

    ASSESSMENT CRITERION 3 
    3. "Yield to maturity" is correctly explained and calculated. 

    ASSESSMENT CRITERION 4 
    4. The fair price in the case of a settlement between coupon dates is correctly calculated. 

    ASSESSMENT CRITERION 5 
    5. The "all in price" of a bond can be correctly explained and calculated. 

    ASSESSMENT CRITERION 6 
    6. A bond is priced as an equivalent package of zero-coupon instruments. 

    SPECIFIC OUTCOME 2 
    Analyse the factors impacting on the price of a bond 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Factors impacting on the price of a bond are correctly identified. 

    ASSESSMENT CRITERION 2 
    2. The relationship between the yield to maturity and price is correctly set out. 

    ASSESSMENT CRITERION 3 
    3. The impact if the yield differs from the coupon rate is correctly identified. 

    ASSESSMENT CRITERION 4 
    4. The effect on price and its composition as time to maturity diminishes is correctly explained. 

    SPECIFIC OUTCOME 3 
    Explain and calculate the total return concept 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Potential sources of return for a bond are correctly identified. 

    ASSESSMENT CRITERION 2 
    2. Common measures of yield and their shortcomings are detailed. 

    ASSESSMENT CRITERION 3 
    3. Yield to maturity is explained as an internal rate of return. 

    ASSESSMENT CRITERION 4 
    4. The interest-on-interest component of return is identified. 

    ASSESSMENT CRITERION 5 
    5. The total return of a bond held to maturity is correctly detailed. 

    SPECIFIC OUTCOME 4 
    Assess various measures of price sensitivity of a bond 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The sensitivity of price to changes in yield is correctly discussed. 

    ASSESSMENT CRITERION 2 
    2. The impact of bond characteristics and yield-to maturity on price sensitivity is explained. 

    ASSESSMENT CRITERION 3 
    3. "Price value of a basis point" is applied as a measure of sensitivity. 

    ASSESSMENT CRITERION 4 
    4. Duration is discussed and applied as a measure of sensitivity. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standards shall be from the relevant education and Training Quality Assurer through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.

    The relevant NSB and SGB should be notified of any feedback related to this qualification.
  • Assessors must be registered as an Assessor with the relevant ETQA
  • Moderators must be registered as assessors with the relevant ETQA
  • Training providers must be accredited by the relevant ETQA
  • Moderation should include both internal and external moderation where applicable
  • The relevant ETQA will co-ordinate all moderation activities in accordance with their policies and procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    Learners can:

    1. Analyse factors impacting on the price of a bond.
    2. Apply various measures of price sensitivity of a bond. 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems relating to the completeness, correctness and accuracy of the information received. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using basic mathematical and/or language skills in the modes of oral and/or written persuasion when communicating with relevant parties regarding the application. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able to use science and technology effectively and critically in applying the use of the company system to process applications. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Terminology:

    The learner should be able to define and contextualise the following terms:

    All-in bond price, Books - closed period, Convexity, Discount bond, Duration, Maturity value, Package of Zeros, Premium bond, Price-value of a basis point, Pull-to-par effect, Total return, Yield-to-maturity.

    Values:

    The use of tasks and materials in the learning event plan should not discriminate against learners on any grounds prescribed in the Bill of Rights and should promote the orientations outlined in the critical cross-field outcomes. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Absa Learning & Development 
    2. Bidvest Bank 
    3. Chartall Business College 
    4. Cornerstone Performance Solutions (Pty) Ltd 
    5. Felix Risk Training Consultants 
    6. Firstrand Bank - Benmore 
    7. Nedbank Ltd 
    8. The Facilitation Workshop 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.