at are the relevant annual interest savings for NJWC if refunding takes place?

Busn – new jersey water co (njwc)]

NJWC’s annual interest savings if NJWC refunds would depend on many factors, including the market conditions and current coupon rates. The company may use the refund to refinance existing debt or issue bonds with lower interest rates. Thus, it can reduce its total cost of borrowing. You can either use a callable bond to repay your debt or you may choose an advance refund using US Treasury securities.

Before you can calculate your annual interest savings, it is necessary to determine what amount needs to be refinanced and the new coupon rates. To calculate how much money you are saving each year, add this amount to their current bond coupon rates. When calculating the total savings, it is important to consider any additional costs such as legal fees and transaction fees.

NJWC will take these things into consideration to help them determine how much money they can save each year by repaying their debts at historically low interest rates. Then, NJWC will be able to make a decision about whether it is the right choice for them.

 

This is a snippet preview, get a complete custom solution
Access a Complete Custom-Written Paper from Our Writers, Now!!