This report, prepared for HI5002 Finance for Business at Holmes Institute, provides a comprehensive analysis of the Australian financial market. It begins with an overview of key financial products like common stocks, bonds, and preferred stocks, comparing their characteristics and risks. The report then delves into the five basic principles of finance, illustrating them with real-world examples. Part 2 focuses on the Australian financial market, examining the bond and share markets in detail. It explores bond ratings, government versus corporate bonds, yield to maturity, and interest rate risk. The share market analysis includes listed stocks, market capitalization, and historical index movements. The final section conducts risk analysis and project evaluation using sensitivity analysis on NPV values and break-even analysis. The report aims to provide a clear understanding of financial concepts and their application in the Australian context.
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