A decent stockbroker will be able to buy them for you. If it is obvious that the interest /capital will be paid late then that will be 'in the price'

You have to realise that anything that is known or obvious or suspected by the majority then this will all be in the price.

1) To buy, talk to a broker. OR Buy a Foreign Bond fund.

If they Default you will likely lose everything. That is the potential. Not JUST the lost interest, they may well default on the entire obligation. pfft...... GONE.

I'm just curious, because I figured if Greek bond coupons are about 7%, that's a great alternative to a savings account and I don't think there's any worry that Greece will collapse.

Also can someone explain to me how I could lose my investment... if Greece defaults then surely they'd just repay their debts later on?

I won't be investing any time soon but I'd like to get educated before I start throwing my money around when I'm older.