20.10 Hudson River Electronics has $500 million of 9-percent perpetual bonds outstanding. These bonds can be called at a price of $1,090 for each $1,000 of face value. Under present market conditions, the outstanding bonds can be replaced by $500 million of 7-percent perpetual bonds. The underwriting and legal expenses of this new issue would be $80 million. What would be the net present value of this refunding? Assume that there are no taxes.