Suppose that you are a money maker for short-term Government bonds. You receive the following information on bids and asks for a given bond:

Deduce the market price of the bond under a single price auction. Show your reasoning graphically and explain in detail your answer. Assume that this security bears no coupon and matures 60 days from now. Calculate this bonds discount yield and bond equivalent yield.

Quantity 95 50 150 77 83 22 Bidder 1 Bidder 2 Bidder 3 Bidder 4 Bidder 5 Bidder 6 Bidder 7 Seller 1 Seller 2 Seller 3 Seller 4 Seller 5 Seller 6 Price (% of Par) 98.55 83.21 91.77 89.37 94.63 90.63 95.76 92.46 81.99 94.17 89.37 88.41 Non-competitive bid 31 52 67 81 76 43 Z Quantity 95 50 150 77 83 22 Bidder 1 Bidder 2 Bidder 3 Bidder 4 Bidder 5 Bidder 6 Bidder 7 Seller 1 Seller 2 Seller 3 Seller 4 Seller 5 Seller 6 Price (% of Par) 98.55 83.21 91.77 89.37 94.63 90.63 95.76 92.46 81.99 94.17 89.37 88.41 Non-competitive bid 31 52 67 81 76 43 Z