A. pays indexed prices
B. pays same price
C. pays different price
D. pays inflated prices
✅ The correct answer is option B.
Single bid auction of TIPS securities means that all bidders pays same price. In the single-price format – all bids accepted by the Treasury are awarded at the same interest rate which is the highest yield of accepted competitive bids.
Single bid auction of TIPS securities means that all bidders pays same price. In the single-price format – all bids accepted by the Treasury are awarded at the same interest rate which is the highest yield of accepted competitive bids.