easy · Private Equity
An investor provides a $100M loan with a 'PIK Toggle' feature. The terms are 10% cash interest plus 2% PIK.
If the borrower chooses to PIK the 2% for the first year, what is the starting principal balance for the calculation of interest in Year 2?
- $110.00M
- $100.00M
- $112.00M
- $102.00M
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