The annual repayment of the new debt will cost $171.7 million. This is the interest expense related to the aforementioned bond issue.
The interest expense of the accounting unit is the cost of borrowing money. In the income statement, interest expense is a non-operating expense. The cost of borrowing money is referred to as interest cost. It is a fee charged by the lender to the borrower for the use of the lender's funds. Interest expense on the income statement can show debt from banks, bond investors, and other sources as well.
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