medium · Private Credit & Debt portfolio-management-monitoring-workouts
A 5-year loan with a face value of $100.00 is currently marked at $96.00 (Level 3 valuation) and pays an annual coupon of 10%.
Using the 'yield to three-year takeout' methodology, what is the approximate total annual return for an investor who buys the loan at this price?
- 10.00%
- 11.67%
- 14.00%
- 10.42%
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