Question
Consider the following Treasury bill auction and results. A total amount of $9 billion is to be issued with a noncompetitive bid of $3.44 billion.
Consider the following Treasury bill auction and results. A total amount of $9 billion is to be issued with a noncompetitive bid of $3.44 billion.
| Bidder | A | B | C | D | E |
| Amount ($ billion) | 0.79 | 1.36 | 2.21 | 1.52 | 4.22 |
| Bid (yield %) | 7.56 | 7.59 | 7.61 | 7.62 | 7.65 |
Define the stop yield. At what yield will a winning bidder be awarded securities? If a bidder bids for $10 million at the stop yield, how much will he or she be awarded? What is the bid-to-cover ratio for this auction?
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Foundations Of Financial Management
Authors: Stanley B Block, Geoffrey A Hirt
12th Edition
0073295817, 9780073295817
