C Tech Ltd is thinking of refunding $60 million in bonds. The bonds carry a coupon rate of 12%, paid annually and have a 4% call premium. The bonds were issued 15 years ago, with 30 years to maturity. The current coupon rate for similar bonds is 9%. The new bond issue would have a call premium of 5% and underwriting costs of $1.2 million. A 2 -month overlap period is expected. The company pays corporate taxes at 30%, and treasury bill rates are currently 4%. Required: Advise the company on whether they should refund their bonds giving the reason for your recommendation. Show all calculations. (16 marks)