medium · Private Credit documentation-covenants-terms
A borrower's interest rate is set at SOFR + 575 bps with a 1.00% SOFR floor.
If SOFR resets to 0.50% and the loan is priced at 98.00 (OID), what is the current effective coupon rate?
- 6.25%
- 6.75%
- 7.15%
- 5.75%
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