medium · Private Equity
A $50M mezzanine facility carries a 10% cash coupon and a 4% PIK (Payment-in-Kind) interest.
What will be the ending principal balance of the loan at the end of Year 2, assuming no principal is amortized and interest is compounded annually?
- $54.00M
- $58.32M
- $54.08M
- $64.98M
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