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The Interest-Coverage Ratio Is Calculated as

question 23

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The interest-coverage ratio is calculated as


Definitions:

Maturities

The set dates when the principal amount of a debt instrument, such as a bond, is due to be paid back to the investor.

Bond Prices

The market value of a bond, which inversely changes with interest rates.

Subordinated Debt

Debt with a lower priority for the payment of interest and principal than other (senior) debt.

Senior Debt

Senior debt is a loan or bond that takes priority over other unsecured or junior debt owed by the issuer.

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