assets. These bonds are considered the riskiest of all corporate bonds and thus offer the highest interest rates. 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. Subordinated debentures Debentures Based on your understanding of bond ratings and bond-rating criterla, which of the following statements is true BBB bonds usually have the lowest yields in the bond markets. U.S. government bonds usually have the lowest yields in the bond markets. In 2008, the United States began to witness one of the worst recessions since the 1930s. The collapse 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 shortfalls in the United States as well as other global markets led to a serious credit crisis. During the credit crisis of 2008-2009, several banks and other businesses went through a reorganization process or were forced to liquidate. 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 Liquidation O Reorganization Flash Playar WEN 27,0,0,130