Eventide Inc. currently have $80 million in bonds which carry a coupon rate of 14%, paid annually. These bonds have a 6% call premium and were issued 14 years ago, with 30 years to maturity. The interest rates have fallen to 10% and as a result, the company is considering refunding these bonds. The new bond issue would incur underwriting costs of $2 million and an overlap period of 2 months is anticipated. The company pays corporate taxes at 40%, and short- term rates are currently 5%. Required: Advise Eventide Ltd. on whether they should refund their bonds giving the reason for your recommendation. (16 marks)