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What is cut off yield?

Updated: 9/30/2022
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13y ago

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what is cut off yield?

ans. cut off yield is the rate at which bids are accepted. bids at yield higher than the cut off yield are rejected and those lower than the cut off are accepted. the cut off yield is set as the coupon rate for the security. bidders who have bid at lower than the cut off yield pay a premium on the security, since the auction is a multiple price auction.

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13y ago
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