The Treasury announces an auction of $10 billion par value of 52-week Treasury bills. Two billion dollars of noncompetitive bids are received. The competitive bids are as follows:
|
Price per $1 of par |
Par value ($) |
|
0.9200 |
3 billion |
|
0.9194 |
3 billion |
|
0.9188 |
4 billion |
|
0.9180 |
2 billion |
|
0.9180 |
2 billion |
|
0.9178 |
6 billion |
Compute the price per dollar of par paid by noncompetitive bidders with a one-price auction. How would this price compare to the price paid by noncompetitive bidders with a discriminatory auction?