DOI:

Abstract

"The article begins with a description of the basic functionality of government bonds. The most important attributes of bonds and their appraisal are described by means of present value. A number of simplifications will be carried out (e.g. assumptions of final date yields and a flat yield curve). In practice, however, flat yield curves are not typical. Although taking normal yield curves into consideration would not pose a problem in terms of method, it would be unnecessary for a demonstration of the central problems and would also extend and complicate it unnecessarily. This is very similar in the case of assumptions of final date yields. By means of an assessment of bonds on international capital markets the second part of the article deals with the consequences and outcomes for the Greek government. This is followed by a short description of the EU bailout measures. After this, a thesis as to the winners and losers of the Greek crisis follows. Finally, from the crisis in Greece, a number of recommendations for action can be derived for Vietnam."

Keywords

Debt Moratorium; Gold Investment; Government Bonds; International Capital Markets; Present Value; Redemption Quota; Rescue Package; Risk Premium; Self-Indulgent Financial Crises; Taxpayers.