In the Economics and Financial Literature, interest on governments debts is considered risk-free. With this assumption as a backdrop, describe the tenets of the Government of Ghana debt exchange programme. Using an illustration to show how this exchange programme will increase the risk premium the Government will pay to future lenders/creditors.

In your discussion of the nominal interest and the risk premium, describe the various components of the nominal interest rates.

Lastly, will interest on Ghana Government debt still be considered Risk-free.