Maple Leaf Company issued corporate 10-year bonds with face value $2,000,000 on July 1, 2009, the coupon rate on the bond is 10% and the current market interest rate of this kind of bond is 8%. The bond pays interests semi-annually on June 30 and December 31.

If Maple Leaf did not repay the bond as in (2); instead, Maple Leaf is thinking about a complete debt-to-debt swap (i.e., issue new debt to the same debtholders to replace the old debt) on July 1, 2010 when the market interest rate is 9% by offering a new bond with face value of $2.2 million that pays 9% coupon rate and matures in 10 years. Do you think the current debtholders would agree with the swap? (6 points)