Junk bonds typically have an interest rate of between 3 and 5 ...

[sjones]

Junk bonds typically have an interest rate of between 3 and 5 percent more than AAA-rated
  long-term debt.
 
  Indicate whether the statement is true or false

Question 2

The best way to adjust for the presence of fixed costs when using the simplified approach for pro forma income statement preparation is ________.
 
  A) to proportionately vary the fixed costs with the change in sales
  B) to adjust for projected fixed-asset outlays
  C) to disproportionately vary the costs with the change in sales
  D) to break the firm's historical costs into fixed and variable components

[ktidd]

Answer to Question 1

TRUE

Answer to Question 2

D