Hi Lennah, a second question for this week. Please see attached.

Thank you.

This week we learned two specific types of financial markets, the government securities markets and the mortgage market. We have discussed how each of these markets has evolved in response to changing market conditions, government regulation, and other influences. Both of these markets in turn can influence other debt markets as well. In 500 words explain what would happen to the corporate cost of capital if a large country, such as the US, Japan, China, or Germany, started to run huge structural debts and required significant mediumterm financing. How can a corporation immunise against the effects of this cost of capital impact? 45 external references required from online library