In a Treasury auction of $2.1 billion par value 91-day T-bills, the following bids were submitted. If only these competitive bids are received, who will receive T-Bill, in what quantity and at what price? If the Treasury also received $800m in non-competitive bids then who will receive T-bills, in what quantity and at what price?
|
Bidder
|
Bid Amount
|
Price
|
|
1
|
$500mn
|
$0.9940
|
|
2
|
$750mn
|
$0.9901
|
|
3
|
$1.5bn
|
$0.9925
|
|
4
|
$1bn
|
$0.9936
|
|
5
|
$600m
|
$0.9939
|