Fact finding of the Australian Bond market. Do a fact finding and present an analysis of Australian bond market. The following questions should be addressed:

(1) Where the bonds are traded secondarily in Australia? What are the types of bonds are traded in that market place?

(2) Who provide bond rating service and what are ratings used for bonds in Australia?

(3) Identify the key differences between Australian Government Bonds and Australian Corporate Bonds, using information and data from ASICs Money Smart (ASIC website)

(4) Explain the nature of yield to maturity (YTM), identify the relationship between coupon rate and YTM, using an example of bond evaluation with coupon rate which is higher and then lower than YTM for illustration.

(5) What is the interest rate risk and how does it affect bond price?