Which of the following ratios is normally considered adequate coverage of interest and principal charges for a municipal revenue bond?
A) 2 to 1.
B) 1 to 1.
C) 3 to 1.
D) 7.5 to 1.
Answer: A) 2 to 1.
Which of the following ratios is normally considered adequate coverage of interest and principal charges for a municipal revenue bond?
A) 2 to 1.
B) 1 to 1.
C) 3 to 1.
D) 7.5 to 1.
Answer: A) 2 to 1.