Using the information from the prior problem, 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?

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) $700 $500 Lubar & Co Bolton Trading Lehman Brothers Goldman Sachs Spellman and Fisher Price $0.9932 $0.9941 $0.9937 $0.9930 $0.9936 $600 $300 $450