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Thank you! . (5 marks) In your analyst's report, the client learns that the dividend yield (dividend/ stock value) for ASX 300 this year is

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. (5 marks) In your analyst's report, the client learns that the dividend yield (dividend/ stock value) for ASX 300 this year is 6% and the forecasted dividend growth rate is 1%. Using the midpoint of the ASX best quote as the value of the ASX 300, what is the annual expected return for the ASX 300? If the savings account offers an interest rate of 2.75%, how would you advise your client in investing? a. (5 marks) A 3-year Treasury Indexed Bond with a 1% annual coupon rate, for which coupons are paid annually, has a face value of $1000. Given the inflation rate for the next 3 years (in the table below), compute the coupon payment in each year as well as the principal at year 3. Assume annual compounding. Show your working Year Inflation rate Coupon rate Coupon 0.03 2 0.01

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