ˈɪntɹɛst ˌɔn pˌiːˌaɪkˈeɪz ɪz səbstˈænʃəli hˈaɪɚ ðɐn dˈɛt ʌv hˈaɪɚ pɹaɪˈɔːɹᵻɾi, ðˈʌs mˌeɪkɪŋ ðə kˈɑːmpaʊnd ˈɪntɹɛst ðə dˈɑːmᵻnˌeɪɾɪŋ pˈɑːɹt ʌvðə ɹᵻpˈeɪəbəl pɹˈɪnsɪpəl.
Interest on PIKs is substantially higher than debt of higher priority, thus making the compound interest the dominating part of the repayable principal.