|
In a Treasury auction of $2.5 billion par value 91-day T-bills, the following bids were submitted:
Bidder
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Bid Amount
|
Price
|
|
1
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$500 million
|
$0.9940
|
|
2
|
$750 million
|
$0.9901
|
|
3
|
$1.5 billion
|
$0.9925
|
|
4
|
$1 billion
|
$0.9936
|
|
5
|
$600 million
|
$0.9939
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(a) If only these competitive bids are received, who will receive T-bills, what quantity, and at what price?
(b) If the Treasury also received $750 million in noncompetitive bids, who will receive T-bills, what quantity, and at what price?