Leveraged Loan Yield Calculation
I was hoping someone could help me figure out how to calculate the yield of a loan with a less than 4 year average life.
I'm trying to build out a formula in excel that will calcualte the yield from a database. It's basically back of the envelope, but what I have so far is the spread + LIBOR floor and every point of OID off par equaling roughly 25 bps. So a loan at L+300, with a 1.00% floor at 99 would yield 4.25%.
The problem with the above is that it doesn't take into account OID for a loan with 2or 3 years. Does anyone have any input into how I could do this better?
Thank you for your time and consideration.