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

Busn – new jersey water co (njwc)]

The relevant annual interest savings for NJWC if refunding takes place would depend on several factors such as the current coupon rate and market conditions. Refunding allows a company to refinance its existing debt by issuing new bonds with lower interest rates, thus reducing its overall cost of borrowing. This can be done through either a traditional callable bond or an advance refunding using US Treasury securities as collateral.

To calculate the annual interest savings, one must first determine the amount that needs to be refinanced and what the new coupon rate will be. Then, subtract this from the current coupon rate of their existing bonds in order to find out how much money is being saved each year in terms of lower interest payments. Additionally, there may also be other costs associated with the process such as transaction fees or legal fees which should also be taken into consideration when calculating total estimated savings.

By taking these factors into account, NJWC can get a better idea of how much they stand to save annually by refunding their debt at historically low rates before making any decisions about whether or not it is right for them.