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Suppose there is $1 billion (of par) of T-Bills are offered at the auction. Non-competitive bids total to $150 mln. Demand schedule of (the only) three competitive bidders that take part in the auction is given below ( in mln of par). Determine the auction price (in %% of par or in mln of dollars). Discount From par I II II @ 2.70%: @ 2.71%: @ 2.72%: @ 2.73%: 300/ 250/ 180 330 / 280 / 190 390/ 310 / 200 450 / 365 / 235 b. Determine the allocation that the first bidder receives

Suppose there is $1 billion (of par) of T-Bills are offered at the auction. Non-competitive bids total to $150 mln. Demand schedule of (the only) three competitive bidders that take part in the auction is given below ( in mln of par). Determine the auction price (in %% of par or in mln of dollars). Discount From par I II II @ 2.70%: @ 2.71%: @ 2.72%: @ 2.73%: 300/ 250/ 180 330 / 280 / 190 390/ 310 / 200 450 / 365 / 235 b. Determine the allocation that the first bidder receives

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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3. Suppose there is $1 billion (of par) of T-Bills are offered at the auction. Non-competitive bids total to $150 mln. Demand schedule of (the only) three competitive bidders that take part in the auction is given below ( in mln of par). Determine the auction price (in %% of par or in mln of dollars). а. Discount From par I II III @ 2.70%: @ 2.71%: @ 2.72%: @ 2.73%: 300 / 250 / 180 330 / 280/ 190 390/ 310 / 200 450/ 365 / 235 b. Determine the allocation that the first bidder receives
Transcribed Image Text:3. Suppose there is $1 billion (of par) of T-Bills are offered at the auction. Non-competitive bids total to $150 mln. Demand schedule of (the only) three competitive bidders that take part in the auction is given below ( in mln of par). Determine the auction price (in %% of par or in mln of dollars). а. Discount From par I II III @ 2.70%: @ 2.71%: @ 2.72%: @ 2.73%: 300 / 250 / 180 330 / 280/ 190 390/ 310 / 200 450/ 365 / 235 b. Determine the allocation that the first bidder receives
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