Suppose the Treasury seeks to raise $10 million in US Treasury bills. Assume the non-competitive bids amount to $3 million.
Assume the competitive bids (discount rates) are as follows: $1 million at 4.79%
$2.5 million at 4.85%
$2 million at 4.96%
$1.5 million at 5%
$3 million at 5.07%
$1 million at 5.1%
$5 million at 5.5%
What is the discount rate that is paid by all successful bidders?

Answer rating: 100% (QA)

To find the discount rate paid by all successful bidders we need to consider the competitive bids a... View the full answer