Consider that $35 billion face value of Treasury bills will be auctioned off .Noncompetitive bids are submitted for $5 billion face value of bills.Competitice bids ,which must specify price (yield) and face value amount ,are shown in Figure 10.Note that a bid with a higher quoted yield is actually a bid at a lower price.
discount rate face value cumulative face value
0.1081 3 3
0.1090 12 15
0.1098 8 23
0.1104 5 28
0.1117 8 36
0.1124 7 36
Because th total face value of bills offered is $35 billion and there are non-competitve bids for $5 billion ,we must select a minimum yield(maximum price) for wich $30 billion face value of bills can be sold to ehose making competitive bids .At a dischount of 0.1104%,$28 billion can be sold to competitive bidders but that would leave 35-5-28=$2 billion unsold.At a slightly higher yield of 0.1117%, more than $30 billion of bills can be sold to competitive bidders.
The single price for the auction is a discount of 0.1117%.All bidders that bid at lower yields(higher prices) will get all the bills they bid for($28 billion);the non-competitive bidders will get $5 billion of bills as expected.The remaining $2 billion in bills go the bidders who bid a discount of 0.1117%.Since there are bids for $8 billion in bills at the discount of 0.1117%,and only $2 billion unsold at a yield of 0.1104%,each bidder receives 2/8 of the face amout of bills they bid for.
没太看懂是什么意思
哪位高人帮解释下
非常感谢呀
