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Please solve explaining each step, thanks in advance )) Solve the following T-Bills auction: The Treasury wants to issue 3000 million euros in 6-month Treasury
Please solve explaining each step, thanks in advance ))
Solve the following T-Bills auction: The Treasury wants to issue 3000 million euros in 6-month Treasury Bills. The non-competitive bids amount to 500 million euros. Competitive bids are: 725m at 99.96%,360m at 100.00%,600m at 99.97%,450m at 99.99%,1000m at 101.00% and 500m at 99.98% Calculate allocation, prices, implicit returns, percentage coverage of the marginal tranche and bid-to-cover ratioStep by Step Solution
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