That's priced 11% of face value. Am I missing something? The Greek govt offered a 50-75% writedown in exchange for new bonds. That would make the new bonds worth 25-50% of the old face value. Old 1 year bonds are trading at 11% face value should have been bid up by arbitragers, more than doubling their present market price. Since this did not happen, I'm concluding the bond market believes the writedown is insufficient and exchanged bonds will default.
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