9. More on types of bonds You can diatinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Ldentity the type of bond based on each description given in the table that follows: Based on your understanding of bond ratings and bond-rating criterial which of the following statements is true? During a period of economic growth and in an optimistic environment, the vield spread between us government bonds and corporate bonds could be higher than during an economic recession and a pessimistic environment. During an economic recession and in a pessimistic environment, the vieid spread between us government bonds and corporate bonds could be higher than during good econamic times. In 2008, the United States began to witness one of the worst recessions since the 1930 s. The coliapse of the housing bubble in 2006 led to a massive decline in real estate prices, affecting consumers and institutions, especially banking and financial entities. Severe liquidity shortals in the United States as well as other global markets led to a serious credit crisis. During the credit crisis of 20082009, several banks and other businesses went through a reorganization process or were forced to liquidste. Consider the following example: In December 2008, Hawalian Telcom took action to strengthen its balance sheet by reducing debt. Although the company continued to operate, its creditors could not collect their debts or loan payments that were due prior to the legal action that the company took. However, on November 30, 2009, the company had $75 million in cash on hand. This is an example of: Reorganization Uquidation