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What ratios are likely to be of greatest interest to the banker or trade creditor? To the bondholder?
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- What is interest rate risk, and how does it relate to callable bonds? Explain using an example of your own choosing.What are the potential problems or limitations of using methods, to estimate the cost of debt, that relies on bond ratings?What are potential problems or limitations of using methods, to estimate the cost of debt, that rely on bond ratings?