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What is the clearing price for the following Treasury Auction, in which the US Treasury wants to sell $2.1 billion of 71 day Treasury Bills?
What is the clearing price for the following Treasury Auction, in which the US Treasury wants to sell $2.1 billion of 71 day Treasury Bills?
| Bidder | Amount ($ millions) | Price |
| 1 | $400 | $0.9934 |
| 2 | 350 | 0.9938 |
| 3 | 600 | 0.9942 |
| 4 | 450 | 0.9945 |
| 5 | 700 | 0.9939 |
| 6 | 200 | non-competitive |
What is the discount rate implied by your answer to the prior question?
What is the effective annual yield (or bond annual yield) implied by your answer to the above?
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