A) The Polish government is about to issue a new 10-year sovereign bond. According to financial specialists, investors w
Posted: Wed Jul 06, 2022 6:41 pm
A) The Polish government is about to issue a new 10-year sovereign bond. According to financial specialists, investors will require a 5% return on their investment in this bond, whereas investors require only a 2% return on a German government bond with the same characteristics.. However, an employee in the Ministry of Finance suggests that Poland should change its public debt estimation method. As a result of this reform, nothing would change in the Polish economy apart from the reported level of public debt. According to the Ministry of Finance, investors would require a lower return on the 10-year Polish bond, if the new public debt, estimated with the new method, is lower. Do you agree?