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Fill in the blank. If a company has three tranches of debt with the 1st tranche
amounting to $60m with an average interest rate of 5.25%, 2nd tranche amounting to
$40m with an average interest rate of 6.95%, and 3rd tranche amounting to $20m at an
average interest rate of 8.75%.
1
2
3
Debt Tranche
$60.0m
$40.0m
$20.0m
Avg. Interest Rate
5.25%
6.95%
8.75%
What is the weighted average interest rate? Round your answer to one decimal point
with no sign convention (no percentage sign needed).
Weighted Average Interest Rate = %
Transcribed Image Text:Fill in the blank. If a company has three tranches of debt with the 1st tranche amounting to $60m with an average interest rate of 5.25%, 2nd tranche amounting to $40m with an average interest rate of 6.95%, and 3rd tranche amounting to $20m at an average interest rate of 8.75%. 1 2 3 Debt Tranche $60.0m $40.0m $20.0m Avg. Interest Rate 5.25% 6.95% 8.75% What is the weighted average interest rate? Round your answer to one decimal point with no sign convention (no percentage sign needed). Weighted Average Interest Rate = %
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