that's a problem because the market price of the bond may have fallen significantly and the rest of the bond payment - 1.5% coupon + principal needs to be re-financed at potentially unfavorable rates

Illya Gerasymchuk 2025-08-13 00:22

the bank's only option now is to sell the UST bond they hold at the market price, and use the proceeds to settle the 1.5% semiannual coupon liability