26.

In a Treasury auction of $1.3 billion par value 91-day T-bills, the following bids were submitted: Bidder 1, 500 million at price 0.9938; Bidder 2, 750 million at price 0.9911; Bidder 3, 1.5 billion at price 0.9914; Bidder 4, 1 billion at 0.9937; and Bidder 5, 300 million at 0.9939. If only these competitive bids are received, which of the following is true:

Select one:

a. Bidder 2 will receive partial allocation

b. Bidder 4 will receive its full allocation

c. Bidder 1 and Bidder 5 will receive their full allocation

d. Both B and C are true.

27.

In a Treasury auction of $1.3 billion par value 91-day T-bills, the following bids were submitted: Bidder 1, 500 million at price 0.9938; Bidder 2, 750 million at price 0.9911; Bidder 3, 1.5 billion at price 0.9914; Bidder 4, 1 billion at 0.9937; and Bidder 5, 300 million at 0.9939. If only these competitive bids are received, which of the following is true:

Select one:

a. Bidder 2 will receive allocation at price 0.9937

b. Bidder 2 will receive allocation at price 0.9911

c. Bidder 1 will receive allocation at price 0.9938

d. Bidder 5 will receive allocation at price 0.9937

28.

In a Treasury auction of $1.3 billion par value 91-day T-bills. $500 million non-competitive bids are received. In addition, the following bids were also submitted: Bidder 1, 500 million at price 0.9938; Bidder 2, 750 million at price 0.9911; Bidder 3, 1.5 billion at price 0.9914; Bidder 4, 1 billion at 0.9937; and Bidder 5, 300 million at 0.9939. If only these competitive bids are received, which of the following is true:

Select one:

a. Bidder 2 will receive no allocation

b. Bidder 5 will receive its full allocation

c. Bidder 1 will be awarded full amount

d. Non-competitive bids are awarded the first

e. All of the above