In Treasury auctions, in the US, there are competitive and non-competitive bids.

Total issue $100 million of Treasury bonds

Four (4) non-competitive bids of $3m each

Competitive bidders:

Bidder Yield % Amount $

A 2.28% 45m

B 2.30% 25m

C 2.22% 25m

D 2.32% 10m

E 2.31% 20m

F 2.30% 10m

Which of the following states is correct in relation to the auction, if it is a Dutch auction?

1.The non-competitive bidders pay more than the competitive bidders.

2.All bidders receive the amounts and bids they offered.

3.The yield will be 2.32%.

4.All successful bidders will pay 2.30%.