Cooper Manufacturing has $50 milion in bonds outstanding that carry a 12 percent coupon rate paid annually. These bonds have 10 years to maturity and a call premium of 7 percent. As the yleld on current bonds is 9.5 percent the company is considering refunding their bonds. A new issue would require 51 million in underwiting costs as well as $500.000 in othis dedactible expenses. In addition, an overlap period of one month is anticipated during which time monety market rates would be 7 percent. The company's a tax rate of 40 percent, Advise Cooper Manufacturithg whether or not they should refumd the bond. Show all caliculations. [t8 marks]