Please help with this case study (Warner Oil Company Case 25). Please use the bond refunding model given below (provide excel formulas). Also, provide a complete write up and not just the calculations. See case below and thank you so much for your help!

P.S. Show an analysis of what would happen if the current rates went from 10.0% up to 10.4%.

Bond refunding model

Warner Motor Oil Company Gina Thomas was concerned about the feel for the bond refunding process. She effect that high interest expenses were having proposed to call in an 11.50 perce on the bottom line reported profits of warner $30,000,000 issue that was scheduled Motor Oil Co. Since joining the company mature in the year 2025, The bonds had been three years ago as vice president of finance, issued in 2005 and since it was now 2010 she noticed that operating profits appeared to the bonds had 15 years remaining to be improving each year, but that earnings maturity. It was Gina's intent to replace the after interest and taxes were declining because bonds with a new $30,000,000 issue that of high interest charges. would have the same maturity date 15 years Because interest rates had finally started into the future as that of the original 2005 declining after a steady increase, she thought it issue. Based on advice from the firm's was time to consider the possibility of investment banking firm, Walston and Sons refunding a bond issue. As she explained to her the bonds could be issued at a rate of 10 boss, Al Rosen, refunding meant calling in a percent. Joe Walston, a senior partner in the bond that had been issued at a high interest rate investment banking firm, further indicated and replacing it with a new bond that was that the underwriting cost on the new issue similar in most respects, but carried a lower would be 2.8 percent of the $30,000,000 interest rate. Bond refunding was only feasible amount involved in a period of declining interest rates. Al Rosen, Before she could do her analysis, Gina who had been the CEO of the company for the needed to accumulate information on the old last seven years understood the general concept, 11.50 percent bond issue that she was but he still had some questions proposing to refund. The original bond He said to Gina, "If interest rates are going indenture indicated that the bonds had an 8 down, bond prices are certain to be going up. percent call premium, and that the bonds