Suppose that due to bad economic conditions, there is an increase in the default risk of corporate bonds. What does the above figure1 depict about the yield differences between the corporate bonds and Government bonds under bad economic conditions? Figure 1 Question 25 options: 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