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This case study covers topics related to Money Market and Bond Market/Fixed Income Debt Securities. T-Bill auction in Money Market. Assume that the Treasury needs
This case study covers topics related to Money Market and Bond Market/Fixed Income Debt Securities. T-Bill auction in Money Market. Assume that the Treasury needs to finance its liquidity balance in the short-run. The treasury launches an auction for a 91-day-T-Bill with Par Value of 100 TRY. 1. Determine the T-Bill Price for each investor's auction bid in the Primary Market. Assume that treasury accepts only the best 3 bids. 2. Assume that each investor bids for an amount of TRY 100.000.000. Determine the investment amount. 3. Treasury will pay 300.000.000 TRY back three months later (maturity date). Determine the sum of funds that the treasury receives from the T-Bill auction. Consider the following investor actions: When 60 days are remaining to the T-Bill's maturity, Investor B sells t-bills with value TRY 100.000.000 to Investor D. When 59 days are remaining to the T-Bill's maturity, Investor C sells t-bills with value TRY 100.000.000 to Investor B. When 30 days are remaining to the T-Bill's maturity, In
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