The Australian government issues bonds through a discriminatory variable rate auction. Which of the following statements is...

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Finance

The Australian government issues bonds through a discriminatoryvariable rate auction.
Which of the following statements is correct?
A.
The only bidders who do not receive any bonds at all are thosewho bid above the cut-off yield.
B.
The winners are the bidders with a yield above or equal to thecut-off yield.
C.
The winners receive a yield equal to the cut-off yield.
D.
The cut-off yield is a decision made by the AOFM.

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4.5 Ratings (911 Votes)

C The winners receive a yield equal to the cutoff yield Australian Government Securities AGS are issued by the Commonwealth of Australia through the AOFM For the sale of government securities the See Answer

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	A.	The only bidders who do not receive any bonds at all are thosewho bid above the cut-off yield.
	B.	The winners are the bidders with a yield above or equal to thecut-off yield.
	C.	The winners receive a yield equal to the cut-off yield.
	D.	The cut-off yield is a decision made by the AOFM.