Easy Private Credit Practice Questions

133 free easy-difficulty Private Credit questions, drawn live from KomFi's calibrated bank. Build the foundation first: these test the core mechanics every harder question assumes.

1. If the current SOFR rate drops to 0.25%, what is the all-in interest rate the borrower must pay?
2. A loan is priced at SOFR + 600 bps with a 1.0% floor. If the current SOFR rate is 0.5%, what is the total inte
3. What is the company's 'covenant headroom' in EBITDA terms?
4. If the company subsequently raises a 'down round' at $6.00 per share, what is the fund's new conversion price?
5. If current SOFR is 0.50%, what is the total coupon rate?
6. What is the likely impact on the loan's fair value?
7. If SOFR is currently 0.50%, what is the all-in interest rate paid by the borrower?
8. If the current 3-month Term SOFR is 0.65%, what is the all-in coupon rate paid by the borrower?
9. A 'Negative Pledge' clause in a credit agreement primarily restricts the borrower from:
10. If the current SOFR rate is 0.50%, what is the all-in interest rate paid by the borrower?
11. If the current market SOFR rate is 0.25%, what is the all-in interest rate?
12. How much cash does the borrower actually receive at closing from this tranche?
13. In a 'Maintenance' vs 'Incurrence' covenant comparison, which of the following is true of Incurrence covenants
14. In the event of an 'Equity Cure', what is the PE sponsor typically doing to resolve a financial covenant breac
15. Why do private credit lenders typically prefer 'Maintenance Covenants' over 'Incurrence Covenants'?
16. What is the role of 'Call Protection' in a private debt instrument?
17. Meridian Logistics breaches its 5.75× leverage covenant. Its private equity sponsor, KomFi Capital, injects $1
18. In a '3/2/1' call protection schedule, what premium percentage is owed if the loan is prepaid during the third
19. What is the amount of the premium paid to the lender?
20. The 'Negative Pledge' clause in a Credit Agreement serves what purpose?
21. If the current SOFR rate drops to 0.25%, what is the effective all-in coupon rate for the lender?
22. A direct lender requires a 'Material Adverse Change' (MAC) c… — What is the primary function of this clause?
23. A loan is priced at SOFR + 575 bps with a 1.00% SOFR floor. If the current SOFR rate falls to 0.25%, what is t
24. A simple private-credit situation: additional debt is permit… — Which concept is illustrated by this case: “ad
25. Which statement correctly describes Covenant-lite loan?
26. A floating loan has a 4% reference rate and a 5% credit spread. Ignoring any floor, what is the all-in rate?
27. What is the fund's TVPI (Total Value to Paid-In) multiple?
28. What is its current Debt-to-Equity (Leverage) ratio?
29. A BDC (Business Development Company) is required to distribu… — What is the primary benefit of this structure
30. A GP is managing a fund with a 'European' (whole-fund) water… — How much carried interest can the GP collect o

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