The Polish government is about to issue a new 10-year sovereignbond. According to financial specialists, investors will require a5% return on their investment in this bond, whereas investorsrequire only a 2% return on a German government bond with the samecharacteristics.. However, an employee in the Ministry of Financesuggests that Poland should change its public debt estimationmethod. As a result of this reform, nothing would change in thePolish economy apart from the reported level of public debt.According to the Ministry of Finance, investors would require alower return on the 10-year Polish bond, if the new public debt,estimated with the new method, is lower. Do you agree?
comment: I got an answer from an expert but I didn't understandthat. I want to know some mathematical explanations withexamples.
The Polish government is about to issue a new 10-year sovereign bond. According to financial specialists, investors will
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