When the Australian government issues government bonds during a tender, the cumulative aggregate/total demand by bidders is the following: Yield Total cumulative aggregate demand (in AUD million face value) 2.20% 2,200 2.15% 2,050 2.10% 1,950 2.05% 1,900 2.00% 1,820 Calculate the ratio that will be used to calculate the allocation of government bonds to the bidders who bid the cut-off yield. Explain in details the process you have followed to calculate the ratio
When the Australian government issues government bonds during a tender, the cumulative aggregate/total demand by bidders is the following: Yield Total cumulative aggregate demand (in AUD million face value) 2.20% 2,200 2.15% 2,050 2.10% 1,950 2.05% 1,900 2.00% 1,820 Calculate the ratio that will be used to calculate the allocation of government bonds to the bidders who bid the cut-off yield. Explain in details the process you have followed to calculate the ratio
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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When the Australian government issues government bonds during a tender, the cumulative aggregate/total demand by bidders is the following:
Yield |
Total cumulative aggregate demand (in AUD million face value) |
2.20% |
2,200 |
2.15% |
2,050 |
2.10% |
1,950 |
2.05% |
1,900 |
2.00% |
1,820 |
Calculate the ratio that will be used to calculate the allocation of government bonds to the bidders who bid the cut-off yield. Explain in details the process you have followed to calculate the ratio.
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