In a Treasury auction of $2.1 billion par value 91-day T-bills, the following bids were submitted: If

Question:

In a Treasury auction of $2.1 billion 91-day T-bills, the following bids were submitted:

Bid Amount ($ million) Price ($) Bidder 500 0.9940 750 0.9901 3. 1.5 0.9925 4 0.9936 600 0.9939

If only these competitive bids are received, who will receive T-bills, in what quantity, and at what price?

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...