In December 2001, Argentina announced it would nothonor its sovereign (government-issued) debt. Manyinvestors were left holding Argentinean bonds pricedat a fraction of their previous value. A few years later,Argentina announced it would pay back 25% of the face value of its debt. Comment on the effects of information asymmetries on government bond markets. Doyou think investors are currently willing to buy bondsissued by the government of Argentina?

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International Bonds

A bond is fixed-income security where a lender comes into a contract with the borrower. The borrower agrees to make payment and interest at a specified date in the future or on maturity period. It is a type of financing that helps to fulfill and meet obligations. Many people invest in bonds because it is a simple form of security.