The Treasury auctioned $1.0 billion par value 91-day T-bills,
the following competitive bids were received:
1. BID 1 100 Million at 0,995
2. BID 2 300 Million at 0,990
3. BID 3 200 Million at 0,994
4. 500 Million in Non Competitive Bids. (Noncompetitive Bidders pay the same price paid by competitive bidders. The significant difference between the two methods is that competitive bidders may or may not end up buying securities, whereas the noncompetitive bidders are guaranteed to do so.)
If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price?
1. BID 1 100 Million at 0,995
2. BID 2 300 Million at 0,990
3. BID 3 200 Million at 0,994
4. 500 Million in Non Competitive Bids. (Noncompetitive Bidders pay the same price paid by competitive bidders. The significant difference between the two methods is that competitive bidders may or may not end up buying securities, whereas the noncompetitive bidders are guaranteed to do so.)
If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price?
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