medium · Private Credit & Debt documentation-covenants-terms
A 15m loan with 3 years to maturity pays a coupon of SOFR + 550 bps quarterly. Current SOFR is 4.5%.
If the borrower's credit rating drops and the current market yield for similar risk is 11.5%, what is the Fair Value of the loan under ASC 820 using the discount rate method?
- 15.56m
- 13.50m
- 15.00m
- 14.44m
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