Answer the following questions:
Question 1: How does collateral affect the interest rate on a bond? How does subordination affect the interest rate on a bond too? What else might affect the interest rate on a bond?
Question 2: What is liquidation and reorganization? When should each be used? Please choose one company that has gone through either type of bankruptcy proceeding and describe the circumstances leading up to the filing. Please provide full description and there is no word limits for each question.