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The Government of Canada is issuing fixed-coupon marketable bonds. The table below lists the competitive bids from government securities distributors. If the Government is awarding
The Government of Canada is issuing fixed-coupon marketable bonds. The table below lists the competitive bids from government securities distributors. If the Government is awarding $1.25 billion of the bond issue to the competitive bidders, calculate the yield that will be awarded to the firms that submitted a non-competitive tender?
Bidder Competitive Bid Yield Size 1 4.021% $250 million 2 4.026% $250 million 3 4.033% $250 million 4 4.044% $250 million 5 4.051% $250 million 6 4.062% $250 million
a. 4.021
b. 4.035
c. 4.040
d. 4.062
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