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In Treasury auctions, in the US, there are competitive and non-competitive bids.
Total issue $100 million of Treasury bonds
Four (4) non-competitive bids of $3m each
Competitive bidders:
Bidder Yield % Amount $
A 2.28% 45m
B 2.30% 25m
C 2.22% 25m
D 2.32% 10m
E 2.31% 20m
F 2.30% 10m
Which of the following states is correct in relation to the auction, if it is a Dutch auction?
1.The non-competitive bidders pay more than the competitive bidders.
2.All bidders receive the amounts and bids they offered.
3.The yield will be 2.32%.
4.All successful bidders will pay 2.30%.
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