In $2012,$ Whitby Enterprises issued $$5$ million in bonds. At issue, the bonds carried a yield of $80$ basis points above comparable Government of Canada bonds yielding $7\mathrm{.}35$ percent. When Whitby

originally issued the debt, the company agreed to compensate investors on a yield of Canada plus $80$ basis points if the bonds were ever called. By $2015,$ rates on comparable Canadas fell to $5\mathrm{.}5$

percent and Whitby could issue new debt at $6\mathrm{.}4$ percent. Given this information, calculate the annual interest penalty Whitby would have to pay to call the debt. Is calling the debt in the best interests of Whitby?