cooper Manufocturing has $50 million in bonds outstanding that catry a 12 percent coupon rate paid annually. These bonds have 10 ears to maturity and a call premlum of 7 percent. As the yield on current bonds is 9.5 percent the company is considering refunding heir bonds. A new issue would require $1 milion in underwriting costs as well as $500,000 in other deductible expenses. In addition, in overlap period of one month is anticipated, during which time money market rates would be 7 percent. The company's a tax rate of 40 ercent. Advise Cooper Manufacturing whether or not they should refund the bond. Show all calculations. (18 marks) cooper Manufocturing has $50 million in bonds outstanding that catry a 12 percent coupon rate paid annually. These bonds have 10 ears to maturity and a call premlum of 7 percent. As the yield on current bonds is 9.5 percent the company is considering refunding heir bonds. A new issue would require $1 milion in underwriting costs as well as $500,000 in other deductible expenses. In addition, in overlap period of one month is anticipated, during which time money market rates would be 7 percent. The company's a tax rate of 40 ercent. Advise Cooper Manufacturing whether or not they should refund the bond. Show all calculations. (18 marks)