AIWMI Exam CCRA-L2 Topic 5 Question 107 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 107
Topic #: 5

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?

AInterest Coverage and Return on assets

BDSCR, and Return on Assets

CDSCR, Interest Coverage and Return on assets

DDSCR and interest Coverage

Show Suggested Answer

Suggested Answer: B

by Della at Feb 11, 2025, 05:30 PM

Limited Time Offer

25%

Off

Get Premium CCRA-L2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ronnie

10 days ago

I'm not sure, but I think D) DSCR and Interest Coverage could also be impacted due to the increase in market rates.

upvoted 0 times

...

Timothy

12 days ago

I agree with Gail, because if market rates have increased, it will impact the Debt Service Coverage Ratio (DSCR), Interest Coverage, and Return on Assets.

upvoted 0 times

...

Gail

16 days ago

I think the correct answer is C) DSCR, Interest Coverage and Return on assets.

upvoted 0 times

...