Consider yourself the CFO of ToughNut Corp. Management is considering whether the company should refund its $720,000, 15.00% coupon, 10-year bond issue that was sold at par 3 years ago. The flotation cost on this issue was $3,600 that has been amortizing on a straight-line basis over the 10-year original life of the issue. ToughNut Corp has a tax rate of 30%, and current short-term rates are 6%. You have collected the following data about the existing bond and the potential new bond issue: Data Collected Existing Bond New Bond $720,000 $720,000 Capital $3,600 $3,180 Flotation cost Maturity 10 Years since issue 15.00% 9.00% Coupon Call premium 12.00% After-tax cost of new debt 6.30% Consider yourself the CFO of ToughNut Corp. Management is considering whether the company should refund its $720,000, 15.00% coupon, 10-year bond issue that was sold at par 3 years ago. The flotation cost on this issue was $3,600 that has been amortizing on a straight-line basis over the 10-year original life of the issue. ToughNut Corp has a tax rate of 30%, and current short-term rates are 6%. You have collected the following data about the existing bond and the potential new bond issue: Data Collected Existing Bond New Bond $720,000 $720,000 Capital $3,600 $3,180 Flotation cost Maturity 10 Years since issue 15.00% 9.00% Coupon Call premium 12.00% After-tax cost of new debt 6.30%