A)(i) What does it mean when we say the Australian Securities Exchange (ASX) is an auction market? And Explain how auction market differ from dealer markets? ( 4 Marks)

(ii) Kristi is considering an investment that will pay $7,500 a year for 8 years, starting one year from today. How much should she pay for this investment if she wishes to earn a 6 percent rate of return? Provide complete calculation in your answer.

(iii) Kristi was offered three (3) different assets, as listed below:

• Asset 1 pays annual interest rate of 9% compounding annually.
• Asset 2 pays annual interest rate of 8.9% compounding semi-annually.
• Asset 3 pays interest rate 8.95 compounding monthly. Based on effective annual interest rate calculations, which of the above assets is the best choice for Kristi. Show your calculations for all three (3) assets.