E-Books.com currently has a 10-year $1.05 million bond issue outstanding (5 years remaining to maturity) with an 12% coupon interest rate and a $1,000 par value. The call premium on these bonds is 5.5%. Because of a decline in interest rates, the firm would be able to refund the issue with a $1.05 million issue of 10% 5-year bonds. The flotation costs for refunding the issue are $25,500. The new bonds will have to be issued one month before the old bonds are called. The present return on short-term government securities is 5.5% annually. E-books has a marginal tax rate of 35%. Assume that there are no other costs associated with refunding. Should the firm refund the bond issue? (Click to select) (Click to select) E-Books.com should not refund the bond issue E-Books.com should refund the bond issue