medium · Debt Capital Markets credit-ratings-risk
When calculating the MFN reset, if the existing TLB has a margin of 400 bps and the new incremental yield is 500 bps, what is the new 'MFN-compliant' margin for the existing debt under a 50 bps protection rule?
- 450 bps
- 425 bps
- 500 bps
- 400 bps
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