In a Treasury auction of $2 billion par value 91-day T-bills, the following bids were submitted: Bidder Bid Amount Price per $100 1 $500 million $99.40 2 $750 million $99.01 3 $1.5 billion $99.25 4 $1 billion $99.36 5 $600 million $99.39 If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price?
In a Treasury auction of $2 billion par value 91-day T-bills, the following bids were submitted: Bidder Bid Amount Price per $100 1 $500 million $99.40 2 $750 million $99.01 3 $1.5 billion $99.25 4 $1 billion $99.36 5 $600 million $99.39 If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price?
Chapter20: Financing With Derivatives
Section: Chapter Questions
Problem 7P
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In a Treasury auction of $2 billion par value 91-day T-bills, the following bids were submitted: Bidder Bid Amount Price per $100 1 $500 million $99.40 2 $750 million $99.01 3 $1.5 billion $99.25 4 $1 billion $99.36 5 $600 million $99.39 If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price?
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