In a Treasury auction of Rs 2,500 million par value 91-day T-bills, the following bids were submitted: Bidder 1 2 3 4 5 Bid Amount (Rs in million) Rs 500 750 1,500 1,000 600 Price Rs 0.9940 0.9901 0.9925 0.9936 0.9939 a. If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price? b. If the Treasury also received Rs 750 million in non-competitive bids, who will receive T-bills, in what quantity, and at what price?
In a Treasury auction of Rs 2,500 million par value 91-day T-bills, the following bids were submitted: Bidder 1 2 3 4 5 Bid Amount (Rs in million) Rs 500 750 1,500 1,000 600 Price Rs 0.9940 0.9901 0.9925 0.9936 0.9939 a. If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price? b. If the Treasury also received Rs 750 million in non-competitive bids, who will receive T-bills, in what quantity, and at what price?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Problem 3.10.
T-bill auction
In a Treasury auction of Rs 2,500 million par value 91-day T-bills, the following bids
were submitted:
Bidder
1
2
3
Bid Amount (Rs in million)
Rs 500
750
1,500
1,000
600
Price
Rs 0.9940
0.9901
0.9925
0.9936
0.9939
5
a.
If only these competitive bids are received, who will receive T-bills, in what quantity,
and at what price?
b. If the Treasury also received Rs 750 million in non-competitive bids, who will
receive T-bills, in what quantity, and at what price?
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