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You are evaluating the bonds of a below-investment grade borrower at a low point in its business cycle. The contract creating a bank lending facility

You are evaluating the bonds of a below-investment grade borrower at a low point in its business cycle. The contract creating a bank lending facility such as unsecured line of credit typically has clauses known as covenants. The company will be in breach of the covenant if the interest coverage ratio, EBITDA/interest falls below 2.0. EBITDA is earnings before interest, taxes, depreciation and amortization. Is EBITDA/interest a discrete random variable or a continuous random variable. Explain

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