Find floating rate note outstanding

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Reference no: EM132920368

-Lovely Linens Inc has a fixed coupon bond and a floating rate note outstanding. It has just announced that due to unforeseen events, its coverage ratio has declined dramatically. Which of the following result? Choose two, 1 point eachThe credit spread on its fixed coupon bonds widens, hence the price drops

The credit spread on its fixed coupon bonds narrows, hence the price rises

The credit spread on its floating rate note widens, but the price is not affected

The credit spread on its floating rate note widens, hence the price drops

The credit spread on its fixed coupon bonds widens, hence the price rises

The credit spread on its floating rate note narrows, hence the price drops

Reference no: EM132920368

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