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The following information is about an auction on a 90 day T-Bill with face value of...

The following information is about an auction on a 90 day T-Bill with face value of $1000. The calling volume is $4 billion, in which $0.5 billion is for non-competitive (N-C) bid. How much is the winning price? *

0.9435

0.9257

0.9520

0.9437

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Answer #1

therefore average price is 0.9735+0.9367+0.9425+0.9437+0.9562/5

=0.95052

0.5 billion dollar is for non-competitive (N-C) bid

F Wil be allocated weighted bid= 5/2.5+5+2.5 * 50= 25% will be allocated to (N-C) bid

F will be allocated 0.25 billion Dollar at 0.95052 rate of bidding price per $

Winning price is ==> 0.9437

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