A firm issues a single level coupon bond with a face value


1. Explain why the capital expenditure build-up in the unconventional oil and gas sector was heavily financed by debt.

2. A firm issues a single level coupon bond with a face value of $1,000 and a coupon rate of 15%. Coupon payments are made annually. The firm's EBITDA is $750 per year. Calculate the interest coverage ratio for this firm.

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Financial Management: A firm issues a single level coupon bond with a face value
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