14 1.2 Which of the following statements about the accepted bids is correct? (45) (A) All accepted bidders will purchase the amount they bid and pay their own bid price. (B) All accepted bidders will pay $0.9932 for each $1 face value. O (C) All accepted bidders will pay $0.9935 for each $1 face value. O (D) All accepted bidders will pay $0.9942 for each $1 face value. [Problem Set 1_CH11: Treasury Bill Auctions) Suppose that the Treasury auctioned $1.5 billion par value 13-week T-bills, the following bids were received. The Treasury also received $500 million in non-competitive bids. 1.1 Who will receive the T-bills? (4) Bidder 1. 2 3. 4 5. 6. Bid Amount $650 million $250 million $550 million $320 million $300 million $600 million Bid Price ($1 face value) $0.9901 $0.9926 $0.9942 $0.9935. $0.9939 $0.9932 (A) Bidder 1, Bidder 2, Bidder 6 (B) Bidder 3, Bidder 4, Bidder 5, and Bidder 6 O (C) Bidder 1, Bidder 2, Bidder 6, and the non-competitive bidders (D) Bidder 3, Bidder 4, Bidder 5, and the non-competitive bidders