medium · Corporate Credit Analysis cap-structure

An analyst is evaluating a TLB with a 6-year maturity and 1% annual mandatory amortization. The market convention for average life is 4.5 years.

If the loan is priced at 98.5, what is the OID-to-yield conversion?

  1. 37.5 bps
  2. 25 bps
  3. 33 bps
  4. 150 bps

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