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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
1. The annualized yield is 3% for 91-day commercial paper, and 3.5% for 182-day commercial paper. What is the expected 91-day commercial paper rate 91 days from now?
2. In a Treasury auction of $2.1 billion par value 91-day T-bills, the following bids were submitted:
|
Bidder |
Bid Amount |
Price |
|
1 |
$500 million |
$0.99 |
|
2 |
$750 million |
$0.99 |
|
3 |
$1.5 billion |
$0.99 |
|
4 |
$1 billion |
$0.99 |
|
5 |
$600 million |
$0.99 |
If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price?
3. If the Treasury also received $750 million in noncompetitive bids, who will receive T-bills, in what quantity, and at what price? (Refer to the table under problem 11.)
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