Question

In: Finance

Considering the position of the government of Mexico as of now (2020), do you recommend them...

Considering the position of the government of Mexico as of now (2020), do you recommend them to issue a new bond at this current environment or do you think they should wait? If yes, then in what currency and duration should the new bond be?

Solutions

Expert Solution

NOW THE WORLD IS FACING THE MAJOR PROBLEM THE NAME OF THAT PROBLEM IS COVID19

*At this time people are stucked into their own houses but it is the benefit for all of us to stay safe at their qwn houses.

*According to my opinion the government has to need for issuing the new bonds because the bond rate in mexio of the 10Y government is 7.140 and it is not the good value for the government point of view.

*Government has to support to the people of the country instead of thinking about the issues of bond.

*If government will issue the bonds ,the bond are related on the name of the medical facitories/hospitals because now all the life is depands  upon the doctors and medicines kits.

* And it will 100% chances to raise the value of the medicines factories and hospitals in the future and everyone will want to buy the valueable bonds at any price.

*Government has to stop for now in the issuing of the new bonds beacuse COVID-19 effects to each and everyone or every firm so government has need to hold their decision reagarding the issuing of new bonds.


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