easy · Debt Capital Markets
A 'Payment-in-Kind' (PIK) interest feature allows the borrower to do which of the following?
- Convert the debt into common stock at the end of the year automatically.
- Pay interest by increasing the principal amount of the debt instead of paying cash.
- Pay interest using the company's physical inventory or assets.
- Skip interest payments entirely without any penalty or increase in debt.
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More Debt Capital Markets practice
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