Macquarie Bank is issuing 5 year bonds that pay 4% per annum

lations OT Finance - S1 2020 Debt Instruments Macquarie bank is issuing 5 year bonds that pay a 4% p.a. coupon semi-annually with a face value of $100,000. The three potential buyers and their yield-to-maturity are: Sarah who requires a YTM of 3.5% p.a., Sean with a YTM of 2% each half-year and Anh that needs 1.5% each half year. For each bond, Sarah is willing to pay Sean is willing to pay and Anh is willing to pay (hint: EAR is not required, all rates adjustments are nominal adjustments only) The order of buyers that Macquarie will sell to are If Macquarie wish to use the capital raised to maturity mismatch, the bond capital will used to fund Next page