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The US government announced an auction of $10 million in 43-day T-Bills. They received noncompetitive bids for $3 million The competitive bids were as follows
| The US government announced an auction of $10 million in 43-day T-Bills. | ||||||
| They received noncompetitive bids for $3 million | ||||||
| The competitive bids were as follows : | ||||||
| Amount | Bid rates | Cumulative | ||||
| Dealer A | $2 million | 1.75% | 2 | |||
| Dealer B | $1 million | 1.85% | 3 | |||
| Dealer C | $0.5 million | 1.90% | 3.5 | |||
| Dealer D | $3 million | 2.05% | 6.5 | |||
| Dealer E | $2.5 million | 2.15% | 9 | |||
| Dealer F | $1.5 million | 2.25% | 10.5 | |||
| Dealer G | $2.75 million | 2.30% | 13.25 | |||
| Dealer H | $1.75 million | 2.40% | 15 | |||
| Calculate at what interest rate will the auction be cleared? | ||||||
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
