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AIWMI CCRA-L2 Exam - Topic 2 Question 32 Discussion

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 ccorresponds 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

AIWMI CCRA-L2 Exam - Topic 2 Question 32 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 32
Topic #: 2
[All CCRA-L2 Questions]

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 ccorresponds 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?

Show Suggested Answer Hide Answer
Suggested Answer: A

by Caprice at May 06, 2022, 08:14 AM

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Candra
11 months ago
Wait, how does a market rate increase affect these ratios?
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Tora
11 months ago
Totally agree, C seems like the right choice!
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Laticia
11 months ago
Not sure if interest coverage will change much.
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Roslyn
11 months ago
I think the DSCR will definitely be impacted.
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Merilyn
11 months ago
Bond F has a YTM of 9.22%.
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Dorcas
12 months ago
Hmm, I'm a bit unsure about this one. There are a few different approaches mentioned, and I'm not sure which one is the best. I'll need to carefully read through each option and think about the pros and cons.
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Charlesetta
12 months ago
Hmm, I'm a bit unsure about this one. I'll need to double-check the math to make sure I have the right answer.
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Reuben
12 months ago
I've got this! Deming's system is the PDCA cycle - Plan, Do, Check, and Act. That's definitely option A. I'm confident that's the right answer.
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