Based on your understanding of bond ratings and bond-rating criteria, which of the following statements is true? During a period of economic growth and in an optimistic environment, the yield spread between U.S government bonds and corporate bonds could be higher than during an economic recession and a pessimists environment. During an economic recession and in a pessimistic environment, the yield spread between US. government bonds and corporate bonds could be higher than during good economy times. In 2008, the United States began to witness one of the worst recessions since the 1930s. The collapse of the bubble in 2006 led to a massive decline in real estate prices, affecting consumers and institutions, and financial entities. Severe liquidity shortfalls the United States as well as other global markets led to a credit crisis. During the credit crisis of 2008-2009, several banks and other businesses went through a reorganization processor were forced to liquidate. Consider the following example: In December 2008, Hawaiian Telecom 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 we due prior to the legal action that the company took. However, or November 30, 2000, the company had $75 million in cash on hand This is an example of Liquidation Reonganization