Question
A recent Treasury bill offer of $1.25 million had the following auction bids: Bidder Bid Amount Bid Price Natalie $450,000 $0.6110 Bailey $240,000 $0.6120 Geraldine
A recent Treasury bill offer of $1.25 million had the following auction bids:
| Bidder | Bid Amount | Bid Price |
| Natalie | $450,000 | $0.6110 |
| Bailey | $240,000 | $0.6120 |
| Geraldine | $240,000 | $0.6190 |
| Skyy | $100,000 | $0.6190 |
| Patrick | $350,000 | $0.6200 |
| Christine | $200,000 | $0.6080 |
| Samuel | $300,000 | $0.6090 |
| Jenny | $160,000 | $0.6140 |
Additional information:
Bids for the auction included competitive and non-competitive bids.
Bailey received 25% of his bid.
Required:
Determine the allotted amount for non-competitive bids. [4 marks]
Show how the treasury bill offer is allotted. Who will receive T-bills and what quantity? [14 marks]
What is the allotted price of the T-bill offer? [2 marks]
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M: Finance
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260772357, 9781260772357
