Commonwealth Government Borrowing:a) On Tuesday, the Reserve Bank announces details of a 182 day Treasury Note tender, with competitive bids to close on Wednesday. A bank lodged a successful bid for $5,000,000 in T-notes at a yield of 6.57% per annum. Settlement is required on Thursday through RITS. What amount will the bank need to pay on settlement?b) The bank later wants to sell the T-note with a futures contract at a yield of 5.75%. As required by the clearing house the bank will post a $100,000 margin in account. Assume the contract’s closing price at the end of the day is quoted at 1.75% yield. What is the balance in your account after marked-to-market?2. Identify the main debt securities of the Australian bond market.3. Define the purpose of securitization.a) Draw a diagram of a basic securitization structure or procedure.b) Use your diagram to explain in detail the securitization process.

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