Dewey, Cheetham, and Howe Ltd. has had several successful years and greatly improved their financial position. As the new vice-president of finance, you are considering refinancing existing bonds with a new issue. You note in particular a bond issue that has the following details: $ 66,000,000 10 8 10.0% Maturity value of bond issue Time to maturity in years) Time since initial bond issue in years) Annual coupon rate on existing bond Call Premium No call allowed during the first 5 years Starting call premium in year 6 Call premium declines by 0.5% per year staring in year 7 Current long-term interest rates on similar bonds Current short-term interest rates Overlap period (in months) Corporate tax rate Underwriting and other issue costs 13% 8.000% 5.0% 1 34% 1,100,000 Should the old issue be refunded and replaced with a debt issue with a comparable maturity and a coupon rate equal to that currently in effect on similar bonds? Show your calculations