pour AVA Suppose that due to bad economic conditions, there is an increase in the default risk of corporate bonds. What does the above figure depict about the yield ferences between the corporate bonds and Government bonds under bad economic conditions? X Figure 1 When the economy is in crisis or expected to be in recession, the yield on corporate bonds will fall and will increase for government bonds Treasury When the economy is in crisis or expected to be in recession, the risk premium would arise the the yield on Corporate bonds will rise and will fall for government bonds