The fourth Ghana Eurobond was successfully issued at 10.75%. A spokesperson said “The bond is a soft amortizing one with tenure of 15 years amortising in years 2028, 2029 and 2030. The principal will be repaid in three instalments of US$333 million in years 2028 and 2029, and US$334 million in 2030. The 15 year tenure means that Ghana has become the first sub-Saharan African country outside South Africa to successfully issue a 15-year bond.” It was further reported the bond was highly oversubscribed by 100%. A couple of weeks before Ghana’s Eurobond, Zambia issued its bond at 9.38%. Government has blamed the higher yield on the bond on turbulent global conditions, whilst other analysts believe the higher yield is a reflection of the weak political economic fundamentals of the economy.

Required

(a) To what extent do global and weak country-specific political and economic fundamentals explain the ‘higher’ yield on the recent (2021) Eurobonds?