Hi guys -
just a quick doubt.
Let's say we have a loan with a principal of $100, bullet @year5
interests: 3% cash and 5% pik
how do you calculate the cash interest? 3% on the nominal value ($100) or on the nominal+accrued pik?
So you calculate the 3% on $100 or $105 ($100+5% PIK)?
Appreciated
CC
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