Please read article and answer one of the following:

http://money.cnn.com/2017/01/19/investing/china-sells-us-debt-japan-russia/ is a very recent article on how buying and selling of US Government bonds is affecting the interest rates.It's been said that China holds a bunch of the US debt in other articles.Please answer thoroughly just one of the following:

1. Why would China hold US government debt in the first place

2. Is just the buying and selling affecting the current yields on treasury securities?How so?If not, what are some other possibilities?

3. If the US government defaulted on their debt, what would be the impact of the yield on that debt (after the markets have a chance to react)?What are some other repercussions of the government defaulting on their debt?

4. Why would a firm issue bonds?What typical things does a corporation have to do to issue bonds that end up being publically traded?