The Following Information Pertains to Bonds: Further Following Information

question 34

Multiple Choice

The following information pertains to bonds: Further following information is available about a particular bond 'Bond F' There is a 10.25% risky bond with a maturity of 2.25% year(s) its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs. Assume that the general market rates have increased. An issuer, Revolution Ltd has plans to roll over its existing commercial paper and forth coming reset dates for its floating rate bonds are very near. Which of the following ratios for revolution will get impacted?

• A) Interest Coverage and Return on assets
• B) DSCR, and Return on Assets
• C) DSCR, Interest Coverage and Return on assets
• D) DSCR and interest Coverage

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Definitions:

Economic Activity

The production, distribution, and consumption of goods and services in an economy.

Benefits

Advantages or monetary assistance received from employment, government, or insurance.

Economic Thinking

The process of evaluating decisions based on costs, benefits, and the impact on resource allocation.

Human Action

The study of human behaviour, particularly in the context of individuals' decisions and actions in the economy.