The bond’s maturity is about 1.4 years, and an investor could currently buy it at a yield of approximately 3.5%. For comparison, for example, the German 2-year rate is 2.1%, so if that were used as a benchmark for the spread, HK would be paying a margin of about 1.4% on top of the risk-free rate.
The German 5-year rate is about 2.45%, so what would HK’s 5-year risk be? 2.5–3.5%? Thus, we could indeed be in the 5–6% range at these interest rate levels.
The current 3-year bond was priced pretty much at the 3% interest rate level, so at that time, investors felt a premium of just over 6.5% for a three-year bond was sufficient.
One more note on the pricing of the current bond: the interest rate level has fallen by about one percentage point, which also has an upward effect on the secondary market price.