hard · Private Credit & Debt
A mezzanine lender provides a $10M subordinated loan with a 13% total coupon (8% cash, 5% PIK).
At the end of Year 2, assuming no principal has been repaid and PIK interest compounds annually, what is the new outstanding principal balance of the loan?
- $11.025M
- $11.300M
- $11.000M
- $12.763M
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