7. The treasury is auctioning $20 billion in 5 year notes. Bidders submit yield-quantity bids as follows (where ?NC is the sum of the non-competitive bids and the letter denotes a firm and the number denotes a bid): Bidder (Bid#) Amount Rate A1 $4 bil 5.00 B1 $2 bil 5.01 C1 $3 bil 5.02 A2 $5 bil 5.02 D1 $4.5 bil 5.03 B2 $2.5 bil 5.03 E1 $1 bil 5.04 B3 $3 bil 5.05 ?NC $2 bil NC The treasury will allocate the bonds under the current Treasury auction rules discussed in class. No bidder holds any positions in the futures, forward or when-issued market. What is the allocation to D1? Select one: a. 3.86 billion b. 4.5 billion c. 3.5 billion d. 2.14 billion