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The Treasury has auctioned off 1 billion $ worth of T-bonds with a maturity of 10 years and semi-annual coupon payments. In this particular
The Treasury has auctioned off 1 billion $ worth of T-bonds with a maturity of 10 years and semi-annual coupon payments. In this particular auction, $76 million worth of non-competitive bids were submitted. Investors submitted the following competitive bids and corresponding requested amounts: Discount Yield (%) 1.5284 1.5285 1.5290 1.5295 1.5298 1.5299 1.5305 1.5310 1.5320 1.5350 Calculate the "High Yield" of this auction. Amount Requested (in million $) 17 43 18 92 287 415 (Submit your answer with four digits after the decimal point.) 111 54 77 50 The coupon rate is set based on the "High Yield" (the winning bid), which you identified in the previous problem. Assume your "High Yield" is now 1.5305% regardless of your previous answer. Calculate the Stop-Out Price of this auction as a percentage of face value using 1.5305%. Hint: The coupon is the nearest multiple of 0.125 percent below the winning discount yield. Recall that in this particular auction, the Treasury sold T-bonds with a maturity of 10 years and semi- annual coupon payments. (Round your answer to the nearest thousandth of a percent.) Numeric Response
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