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When the Australian government issues government bonds during a tender, the cumulative aggregate/total demand by bidders is the following: Yield Total cumulative aggregate demand (in
When the Australian government issues government bonds during a tender, the cumulative aggregate/total demand by bidders is the following:
Yield | Total cumulative aggregate demand (in AUD million face value) |
2.20% | 2,200 |
2.15% | 2,050 |
2.10% | 1,950 |
2.05% | 1,900 |
2.00% | 1,820
|
Calculate the ratio that will be used to calculate the allocation of government bonds to the bidders who bid the cut-off yield. Explain in details the process you have followed to calculate the ratio.
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