AIWMI Certified Credit Research Analyst Level 2 CCRA-L2 Question # 40 Topic 2 Discussion

AIWMI Certified Credit Research Analyst Level 2 CCRA-L2 Question # 40 Topic 2 Discussion

CCRA-L2 Exam Topic 2 Question 40 Discussion:
Question #: 40
Topic #: 2

The following information pertains to bonds:

CCRA-L2 Question 40

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 ccorresponds to YTM of 9.22%. The following are the benchmark YTMs.

CCRA-L2 Question 40

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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