bank loan WACC treatment

Dear Tutor ,

I was unable to get the logic behind this question so I decided to post part of the question so u could better understand what I`m asking

I was trying to solve this question and I still have this problem with Bank Loan and what is the treatment of it when calculating WACC , what I`m questioned about is why the figure for the bank loan stays the same 1540 while other figures have been calculated for their market value , and why there was a calculation for a bank loan (as you see below 9,1%) and what do we use that figure for.

Question 24 REDSKINS PLC
Redskins plc has an authorised share capital of 10 million 25c ordinary shares, of which 8 million have been issued. The current ex-dividend market price per ordinary share is $1.10. A dividend of 10c per share has been paid recently. The company’s project analyst has calculated that 18% is the most appropriate cost of equity capital. Extracts from the latest balance sheets for both the group and the holding company are given
Redskins and Subs Redskins
$000 $000
Issued Share Capital 2,000 2,000
Share Premium 1,960 1,960
Reserves 3,745 708
Shareholders funds 7,705 4,668
_____ _____

Redskins and Subs Redskins
Minority interests 895 –
_____ _____
3% Irredeemable 1,400 –
9% Debentures 1,500 1,500
6% Bonds 2,000 2,000
Bank Loans 1,540 600
_____ _____
6,440 4,100

All debt interest is payable annually and all the current year’s payments will be made shortly. The current cum-interest

market prices for $100 nominal value are $31.60 and $103.26 for the 3% and 9% debentures respectively. Both the 9% debentures and the 6% bonds are redeemable at par in ten years’ time. The 6% bonds are not traded on the open market but the analyst estimates that its actual pre-tax cost is 10% per annum. The bank loans bear interest at 2% above base rate (which is currently 11%) and are repayable in six years. The effective corporation tax rate of Redskins plc is 30%

Required: (a) Calculate the effective after-tax weighted average cost of capital as required by the directors.

Part of the answer:
After-tax cost of bank loan = (11% + 2%) × (1 – 0.30) = 9.10%

Equity 8,000 × 1.1 = 8,800
3% debt 1,400 × 0.286 = 400
9% debt 1,500 × 0.9426 =1,414
6% debt 2,000 × 0.7547 =1,509
Bank loan =1,540

Thanks in advance