The US Treasury is conducting an auction for $1.8 billion of 90-day US Treasury Bills. What is the market-clearing price based on the following competitive bids? Firm Amount ($ in millions) Price Lubar & Co $700 $0.9932 Bolton Trading $500 $0.9941 Lehman Brothers $600 $0.9937 Goldman Sachs $300 $0.9930 Spellman and Fisher $450 $0.9936 0.9932

Using the information from the prior problem, please calculate the winning price assuming there is also a non-competitive bid of $1 billion.

What is the discount rate implied by the price in the scenario with the competitive bidder?