easy · Private Credit & Debt loan-structures-instruments
A mezzanine lender provides a $10M subordinated loan with a 13% total coupon, structured as 8% cash-pay and 5% PIK interest (compounded annually).
At the end of Year 2, what is the outstanding principal balance of the loan?
- $11.000M
- $12.769M
- $11.664M
- $11.025M
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