I cant figure out why interest (15%) is charged on the average of the principal of the 2 years (for example - year 1 principal is 10K, year 2 principal is 10.3K, interest charged = 15% * 10.15K); But at the same time, PiK interest is calculated on the principal at the start of the year.
IDK if u still care but i think his interest rate was actually 15.225% but he just rounded to 15%. and then he was adding the PIK component to the beginning balance after every period
Very useful video. Thank you very much for posting it. Just one question from your slide... in the 5y $10k loan example, how do you arrive at the Interest figures? for e.g year 1 figure of USD 1523, thats not 15% of 10k as one what would expect. Similarly how do you arrive at 1568 for year 2? Would be great if you elaborate. Thanks again!
IDK if u still care but i think his interest rate was actually 15.225% but he just rounded to 15%. and then he was adding the PIK component to the beginning balance after every period
Hi great video, just had a question at 10:30. The pictures show senior subordinated debt as mezzanine - the debt component is clear but where is the equity component? Is there a warrant attached to senior subordinated deb? Thanks
Nice Bond Capital charts. I don't recall your asking Bond Capital for permission to use them. If you aren't going to cite your sources you shouldn't use them. I recall that concept is taught in the CFA ethics section. If you are going to use our charts then please update your video to incorporate proper source citations. In the alternative please remove this video.
Your channel is the most legit on RUclips. Please keep making this type of video.
Thanks, will do!
I cant figure out why interest (15%) is charged on the average of the principal of the 2 years (for example - year 1 principal is 10K, year 2 principal is 10.3K, interest charged = 15% * 10.15K); But at the same time, PiK interest is calculated on the principal at the start of the year.
Very helpful video for my interview prep. Appreciate it!
Very helpful! Thank you.
On calculation of Equity Value of Warrants for fully diluted $200M @ 4% should be $8M, right? (200*,04=8). Thanks!
I believe he was meant to say $300,000 which is the diluted equity value ($200k initial equity + $100,000 warrant)
In the 5 year mezz model. How did you get interest of 1523 in year 1? Shouldn't it just be 1500 standard across all years
same question here. Someone plz help.
IDK if u still care but i think his interest rate was actually 15.225% but he just rounded to 15%.
and then he was adding the PIK component to the beginning balance after every period
Your videos are the best
This is great. Thanks for the video!
How does one pivot into asset management from the engineering field? I am getting my MBA soon and I am looking to change career paths.
Very good video, thanks for your inpout!
Thanks for watching!
How did you calculate the other deferred component in the 5 year example?
Amazing video. Congratulations
Thanks for watching!
Very useful video. Thank you very much for posting it. Just one question from your slide...
in the 5y $10k loan example, how do you arrive at the Interest figures? for e.g year 1 figure of USD 1523, thats not 15% of 10k as one what would expect. Similarly how do you arrive at 1568 for year 2? Would be great if you elaborate.
Thanks again!
IDK if u still care but i think his interest rate was actually 15.225% but he just rounded to 15%.
and then he was adding the PIK component to the beginning balance after every period
There's a confusion with your figures: e.g. 4% of 200'000'00 is not 12'000'000 or Principal @ 5'503
Awesome vid. For the last example, why does this amount change year to year if the PIK rate stays the same at 3%?
Great tutorial!
Thank you!
Hi great video, just had a question at 10:30. The pictures show senior subordinated debt as mezzanine - the debt component is clear but where is the equity component? Is there a warrant attached to senior subordinated deb? Thanks
Great Video! Thanks a lot!
very nice efforts. useful n engaging.
Thanks for the details
Thnx
Very well explained
I wonder if, as interest rates seem to begin to increase in the early months of the Biden admin, we will begin to see a Mez debt revamp?
Great job kid
Nice Bond Capital charts. I don't recall your asking Bond Capital for permission to use them. If you aren't going to cite your sources you shouldn't use them. I recall that concept is taught in the CFA ethics section. If you are going to use our charts then please update your video to incorporate proper source citations. In the alternative please remove this video.
Thnx
Very well explained