The Wagner Corporation has a $20 million bond obligation outstanding, which it is considering refunding. Though the bonds were initially issued at 9 percent, the interest rates on similar issues have declined to 7.5 percent. The bonds were originally issued for 20 years and have 16 years remaining. The new issue would be for 16 years. There is an 8 percent call premium on the old issue. The underwriting cost on the new $20 million issue is $525,000, and the underwriting cost on the old issue was $400,000. The company is in a 30 percent tax bracket, and it will allow a 30 day overlap period. Treasury bills currently yield 3 percent. Should the old issue be refunded with new debt?