1) The Treasury announces an auction of $18 billion par value of 90-day T-bills. $4 billion of non-competitive bids are received. The competitive bids are as shown.

What is the revenue received by the Treasury in $ billion from this auction?

Yield	Price per $1 of par	Par value bid
5.20%	0.988	$5 billion
5.60%	0.969	$5 billion
6.00%	0.947	$2 billion
6.40%	0.929	$4 billion
6.80%	0.905	$4 billion

2)

Which of the following is likely not a reason for changes in the required rate of return of a bond?

The economy experiences a downturn or a financial crisis.

The company finds a new potential market that it plans to extend its business significantly in the future. This information is not disclosed to the public yet.

None of the reasons is correct.

The issuers credit quality decreases.