During a Treasury Bill auction, the Treasury Department needs to sell $900 Million in new T-Bills with a maturity of 90 days. From the primary dealers, they have already received non-competitive bids for $350 million.
What is the lowest accepted price for the competitive bidders?
what price will the non-competitive bidders pay?
Bidder Number Dollar Amount Wanted Bid Price
1 $200 million 99.10
2 $250 million 99.56
3 $100 million 99.75
4 $100 million 98.95
5 $50 million 99.81
6 $150 million 99.65
7 $50 million 99.41
8 $100 million 99.34
9 $150 million 98.99