Comment on the valuation methodology that could be used to value the instrument with the following inputs.

[Note: You are not required to build a model for this instrument]

1. Instrument name: Security B

2. Issuer description: Issuer provides financial infrastructure and technology for the crypto economy. The company offers retail users the primary financial account for the crypto economy, institutions a state-of-the-art marketplace with a liquidity for transacting in crypto assets, and ecosystem partners technology and services that enable to build crypto-based applications and accept crypto assets as payment.

3. Origination Date: 2021-01-01

4. Maturity Date: 2025-12-31

5. Principal Outstanding: USD 250,000

6. Interest Details:

A. 12% PIK interest rate paid annually at the end of the year.

B. 12% cash interest rate paid monthly at the end of each month.

7. Principal Amortization: None; bullet payment at maturity.

8. Debt senior to Instrument 2: USD 500,000

9. EV of the issuer as of origination and 2023-06-30 is USD 1,500,000 and USD 605,000 respectively.

10. The instrument was acquired at 30% below par at origination

Expected Outputs

1. Dirty price

2. Clean price (if applicable)

3. Dirty price percentage of par

4. Clean price percentage of par (if applicable)

5. Yield to Maturity (if applicable