Floating-Rate Cash Interest: Base Rate, Margin and Floor
This lesson is part of the course
In this lesson
You price eight quarters of a fictional direct-lending term loan: apply the base-rate floor with MAX, compute the all-in rate and the cash interest on an actual/360 basis, and measure what the floor earned the lender.
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Lessons in this course
- Floating-Rate Cash Interest: Base Rate, Margin and Floor Locked
- Upfront Fees and Original-Issue Discount: The Lender's Real Yield Locked
- PIK Interest: Interest Paid in Kind and a Growing Balance Locked
- Delayed-Draw Tranches: Commitment Fees and Blended Yield Locked
- Call Protection: Prepayment Premiums and Yield if Repaid Early Locked
- Unitranche Splits: First-Out and Last-Out Pricing Locked
- Credit Losses: Expected Loss and the Yield after a Default Locked
- Deal Comparison Dashboard: Yield, Cash Yield, PIK and Losses Locked