medium · Corporate Credit Analysis
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?
- 37.5 bps
- 25 bps
- 33 bps
- 150 bps
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