question 24 in BPP study text

Hi,

I’m confused over something in question 24 (Katash) at the back of the BPP study text. It’s a long question, so I won’t type it out here, but I’m hoping a few people have the same book.

It relates to part (a), which asks for the current WACC. For the debt element, it gives the most recent financial statement, which is the y/e 20X1. Later, it states “£390 million in debt paying interest at 9.5% per annum, secured on the new premises and repayable in 20X8.

From that information, I deduced that the debt starts in 20X1 and finishes in 20X8, a total of 7 years. However, in the answer, it calculates the debt as being repayable in 5 years.

I’m sure I’m just missing something obvious, but I can’t work out what it is! Is there anyone here who can help?

Thanks.