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

Water co. of New Jersey (njwc).

If refunding occurs, the annual interest savings that New Jersey Water Corporation (NJWC), assuming no interest deductions, would be equal to the difference in the interest rates of new bonds and current. The annual interest savings would then be 1 if NJWC refinances at a rate of 4 % and has an effective borrowing costs of 5%.

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