Question
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 $2.1 billion of 71 day Treasury Bills? You will need your answer to this for the next 2 questions.
| Bidder | Amount ($ 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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cryptoassets The Innovative Investors Guide To Bitcoin And Beyond
Authors: Chris Burniske ,Jack Tatar
1st Edition
