The Treasury auctioned $2.5 billion par value 91-day T-bills, the following bids were received: Bidder Bid...

Question

Question

business finance

Answer 1

Answer #1

Option A i.e noncompetitive bidder receive $2 billion and bidder 1 receives $ 500 million.

This is because the bid given by non competitive bidder is best since there is no competitor who is giving better bid then him .

So out of $ 2.5 billion $ 2 billion given to non competitor bidder and balance will be given to next best bidder i.e Bidder 1

Answer 2

Similar Homework Help Questions

In a Treasury auction of $2.1 billion par value 91-day T-bills, the following bids were submitted:...

In a Treasury auction of $2.1 billion par value 91-day T-bills, the following bids were submitted: Bidder Bid Amount Price 1 $500 million $0.9940 2 $750 million $0.9901 3 $1.5 billion $0.9925 4 $1 billion $0.9936 5 $600 million $0.9939 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 182-day par value T-bills, there are $600 million noncompetitive...

In a Treasury auction of $2 billion 182-day par value T-bills, there are $600 million noncompetitive bids as well as the following competitive bids: Bidder Bid Amount Price $800 million $0.9936 $700 million $0.9938 $300 million $0.9930 $900 million $0.9940 $0.9930 $0.9936 $0.9937 $0.9938 $0.9940
The Federal Reserve is offering Treasury bills with a par value of $40 billion for sale....

The Federal Reserve is offering Treasury bills with a par value of $40 billion for sale. They have received $18 billion of noncompetitive bids. The competitive bids for a $10,000 par value bond are: Bidder Price Bid Qty Bid (bn) A $ 9,825 2 B 9,815 6 C 9,800 14 D 9,700 20 How much money will the Federal Reserve raise from this offering? Group of answer choices $39.05 billion $39.20 billion $39.50 billion $39.10 billion $39.30 billion

The US Treasury announces its intent to auction $15 billion par value of 26-week Treasury bills....

The US Treasury announces its intent to auction $15 billion par value of 26-week Treasury bills. It receives $5 billion of non-competitive bids. The competitive bids received are as follows: Price Per $1 of Par Par Value 0.9200 $3 billion 0.9170 $4 billion 0.9140 $5 billion 0.9110 $4 billion 0.9100 $3 billion What is the revenue that the Treasury could have generated (in billions)? Round your answer to 2 decimal points. If the security auctioned above was Canada Government bond,...