A legal document that details the rights of bondholders and the issuer is called If the legal document just described a sinking fund provision, is the bond considered to have more or less default risk, all else being equal? Less default risk More default risk You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: Type of Band scription These bonds are backed by real estate holdings and equipment, and if a company goes bankrupt, the collateral can be sold off to compensate for the default. These bonds, more so than other collateralized securities, have prior claims over assets. These bonds are traded in the bond markets based on investors' belief that the issuer will not default on the repayment. These bonds have no collateral and usually offer higher yields. These bonds have a calm an assets only after senior debit has been paid in all Bond ratings are very important as they are indicators of the bonds' default risk and have a measurable impact on the band's yield. During an economic recession and in a pessimistic environment, the yield spread between U.S. government bonds and corporate bonds could be than during good economic times