Homework 7 (related with the 5th Week, 20th Reading Material): a) What is subaggregation clause in sovereign debt restructuring? b) Why does uniform applicability requirement not guarantee the same economic effect for all series of the hypothetical country Evening bonds if restructured bonds for all bond series have 10 years of maturity with 1% interest rates? c) Which bond series are mostly and least affected by the restructuring looking at (1) interest rate and (2) maturity changes? d) How could subaggregation satisfy uniform applicability requirement in this case? Country Interest Rates Maturity of Interest Rates Maturity of Morning On Bonds Bonds Restructured Restructured Bonds Bonds Series A 9% 3 years 1% 10 years Series B 5% 6 years 1% Series C 11 % 4 years 1% 10 years Series D 6% 8 years 1% 10 years 10 years Homework 7 (related with the 5th Week, 20th Reading Material): a) What is subaggregation clause in sovereign debt restructuring? b) Why does uniform applicability requirement not guarantee the same economic effect for all series of the hypothetical country Evening bonds if restructured bonds for all bond series have 10 years of maturity with 1% interest rates? c) Which bond series are mostly and least affected by the restructuring looking at (1) interest rate and (2) maturity changes? d) How could subaggregation satisfy uniform applicability requirement in this case? Country Interest Rates Maturity of Interest Rates Maturity of Morning On Bonds Bonds Restructured Restructured Bonds Bonds Series A 9% 3 years 1% 10 years Series B 5% 6 years 1% Series C 11 % 4 years 1% 10 years Series D 6% 8 years 1% 10 years 10 years