Consider a $200 million ARS issue by Boeing which UBS has underwritten and for which it is managing the auctions (a further look at the ARS prospectus reveals that the ARS have a max interest rate of 10%). At the auction, UBS encounters the following demand by investors for these ARS (which may include investors currently holding the securities): Case A: Investor 1 Investor 2 Investor 3 Investor 4 Investor 5 Amount=$100m Amount=$50m Amount=$40m Amount=$100m Amount=$30m Rate=4% Rate=6% Rate=5% Rate=5.5% Rate=8% Case B: Investor 1 Investor 2 Investor 3 Investor 4 Investor 5 Amount=$100m Amount=$50m Amount=$30m Amount=$100m Amount=$80m Rate=5% Rate=7% Rate=8.5% Rate=11% Rate=12% For each of these two cases, describe the outcome of the auction, i.e., determine which investors (including current) will be holding what amount of the ARS and at what price/rate. What does this mean for liquidity of the ARS? Which case may suggest a role for auction intervention by UBS and how could such intervention look like? How would it affect the outcome, and moreover, what are potential reasons that UBS may choose to intervene? Consider a $200 million ARS issue by Boeing which UBS has underwritten and for which it is managing the auctions (a further look at the ARS prospectus reveals that the ARS have a max interest rate of 10%). At the auction, UBS encounters the following demand by investors for these ARS (which may include investors currently holding the securities): Case A: Investor 1 Investor 2 Investor 3 Investor 4 Investor 5 Amount=$100m Amount=$50m Amount=$40m Amount=$100m Amount=$30m Rate=4% Rate=6% Rate=5% Rate=5.5% Rate=8% Case B: Investor 1 Investor 2 Investor 3 Investor 4 Investor 5 Amount=$100m Amount=$50m Amount=$30m Amount=$100m Amount=$80m Rate=5% Rate=7% Rate=8.5% Rate=11% Rate=12% For each of these two cases, describe the outcome of the auction, i.e., determine which investors (including current) will be holding what amount of the ARS and at what price/rate. What does this mean for liquidity of the ARS? Which case may suggest a role for auction intervention by UBS and how could such intervention look like? How would it affect the outcome, and moreover, what are potential reasons that UBS may choose to intervene