The Federal Reserve is offering Treasury bills with a par value of $10 billion for sale. They have received $3 billion of noncompetitive bids. The competitive bids for a $10,000 par value bond are:
$$\begin{array} { c c c c }
\text { Bidder } & \text { Price Bid } & \text { Qty } & \text { Bid } \
\mathbf { A } & \$ 9,925 & \$ 2 & \text { billion } \
\text { B } & \$ 9,500 & \$ 5 & \text { billion } \
\mathbf { C } & \$ 9,875 & \$ 4 & \text { billion } \
\text { D } & \$ 9,750 & \$ 9 & \text { billion }
\end{array}$$
How much money will the Federal Reserve raise from this offering?

Question

The Federal Reserve is offering Treasury bills with a par value of $10 billion for sale. They have received $3 billion of noncompetitive bids. The competitive bids for a $10,000 par value bond are:
$$\begin{array} { c c c c } 
\text { Bidder } & \text { Price Bid } & \text { Qty } & \text { Bid } \
\mathbf { A } & \$ 9,925 & \$ 2 & \text { billion } \
\text { B } & \$ 9,500 & \$ 5 & \text { billion } \
\mathbf { C } & \$ 9,875 & \$ 4 & \text { billion } \
\text { D } & \$ 9,750 & \$ 9 & \text { billion }
\end{array}$$
How much money will the Federal Reserve raise from this offering?

Quizplus · Accepted Answer

The Answer of The Federal Reserve is offering Treasury bills with a par value of $10 billion for sale. They have received $3 billion of noncompetitive bids. The competitive bids for a $10,000 par value bond are:
$$\begin{array} { c c c c } 
\text { Bidder } & \text { Price Bid } & \text { Qty } & \text { Bid } \
\mathbf { A } & \$ 9,925 & \$ 2 & \text { billion } \
\text { B } & \$ 9,500 & \$ 5 & \text { billion } \
\mathbf { C } & \$ 9,875 & \$ 4 & \text { billion } \
\text { D } & \$ 9,750 & \$ 9 & \text { billion }
\end{array}$$
How much money will the Federal Reserve raise from this offering?

The Federal Reserve Is Offering Treasury Bills with a Par