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Fixed interest debt porpotion how they have calculated i dont understand why they have taken overdraft
Interest is payable on both the Bonds and the overdraft.
The whole point of part (a) of the question is to show how an increase in interest rates will affect the overdraft interest payable (because the rate is variable) but will not affect the interest payable on the bonds (because the rate is fixed).
That is what you are required to discuss (and as always it is the discussion that is needed for the marks, more than for the calculations). Your supporting calculations can appear in several ways – there is no standard approach (and the examiner suggests two ways), provided that they make it very clear how an increase in interest rates would affect the company.
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