I read with amusement on the latest news in which a bailout package has finally been agreed upon. You can read the news such as this one: HERE. In the news, it is said that as a result of the new package, Greece avoided a default.

To financial advisers, fund managers and man-in-the-street, a default is simply a broken promise. In the context of bonds, a default occurs when the bond issuer fails its promise to repay the capital (or known as the 'par' value) at maturity and/or unable to pay the agreed interest (or known as the 'coupons'). According to the news, Greek bond holders had previously agreed in October last year to take a 50 percent loss on the face value of their bonds. Now, they agreed to take another 53.5 percent loss on the face value, the ...