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Explain the concepts of Bill Discounting
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Solved in 2 steps
- What is the clearing price for the following Treasury Auction, in which the US Treasury wants to sell $1.9 billion of 120-day Treasury Bills? You will need your answer to this for the following two questions. Bidder 1 2 3 4 5 6 Amount ($ millions) $400 350 600 450 700 200 Price $0.9934 0.9938 0.9942 0.9945 0.9939 non-competitiveCompare standard quantity discounts to cumulative quantity discounts.How do you calculate simple interest and commission?
