$.$ Assume $6\%$ bonds could be issued and the proceeds used to refund the existing bonds $($i$.$e$.$: you issue enough bonds to completely buy back the old bond without the additional use of company cash$).$ What would be the present value of the new bonds?

$.$ Assume $6\%$ bonds could be issued and the proceeds used to refund the existing bonds $($i$.$e$.$: you issue enough bonds to completely buy back the old bond without the additional use of company cash$).$ What would be the present value of thAssume $6\%$ bonds could be issued and the proceeds used to refund the existing bonds $($i$.$e$.$: you issue enough bonds to completely buy back the old bond without the additional use of company cash$).$ What is the present value of the savings generated by refinancing?

$($Hint: Savings $=$ PV of old bond $$ PV new bond$)$e new bonds?