Junk bonds areaissued by firms with a low debt

Question

1. junk bonds are

   a.	issued by firms with a low debt ratio
   b.	usually rated Ba or higher
   c.	are issued by firms with a high debt ratio
   d.	issued with coupon rates at least 8 percentage points or more above the highest quality issues

 

2. Stock splits are:

a.	a sign that the company cannot pay its stock dividend.
b.	a sign that the company's stock price is too low.
c.	a sign that the company wants to get its stock price to a more desirable trading level.
d.	a sign that the company is in need of more financial capital