medium · Private Credit & Debt loan-structures-instruments
A HoldCo PIK note is issued at a 3% Original Issue Discount (OID) with a 10% PIK coupon.
What is the approximate effective annual yield to a 5-year maturity, assuming no cash interest and no early redemption?
- 10.0%
- 13.0%
- 10.7%
- 7.0%
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