The Swedish government is just about to issue a new 10-year sovereign bond. According to financial experts, the investor

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The Swedish government is just about to issue a new10-year sovereign bond. According to financial experts, theinvestors will require a 5% return on their investment in the bond,but investors require only a 2% return on an identical Norwegiangovernment bond. However, the Swedish Ministry of Finance suggeststhat Sweden should change its public debt estimation method. Thisreform would change nothing in the Swedish economy except thereported level of public debt. According to the Swedish Ministry ofFinance, the investors would require a lower return on the 10-yearSwedish bond, if the new public debt, estimated with the newmethod, is lower. Do you agree with this?