Issue a three-year treasury note to raise

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The US Treasury decides to issue a three-year treasury note to raise $16 billion. If the following bids were received, calculate the offer price (to 4 decimal places) of the US T-note per $100 face value.

Bidder A bidding 2.60% for $5.0 billion; Bidder B bidding 2.35% for $3.8 billion;

Bidder C bidding 2.48% for $4.5 billion; Bidder D bidding 2.77% for $5.6 billion;

Bidder E bidding 2.21% for $2.7 billion; Non-competitive bids total for $0.5 billion.

Reference no: EM13730406

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