Question 4 (15 marks) Consider the following Treasury auction and results: Noncompetitive bids = $2.56 billion Total to be issued = $8.50 billion Total competitive bids received: Amount ($ billions) Bid (yield %) $0.20 7.55% 0.26 7.56 0.33 7.57 0.57 7.58 0.79 7.59 0.96 7.60 1.25 7.61 1.52 7.62 2.00 7.63 1.12 7.64 1.10 7.65 No bids above 7.65% (a) How much is available to be awarded to competitive bidders? (b) What is the stop yield? (c) Which bidders will be awarded securities? (1 marks) (2marks) (3 marks) (d) At what yield will a winning bidder be awarded securities? (e) Distinguish between competitive bidders and non-competitive bidders in T-bill auction. (2 marks) (4 marks) (f) "The Treasury accepts noncompetitive bids in ascending order of yield until the accepted bids reach the offering amount." True or False. Explain your answers. (3 marks)