The ABC Company currently has $50 million of 13 percent coupon bonds that pay interest semi-annually. These bonds are due in 8 years and can be called at a premium of 5 percent. At present, the company can float a new issue of similar bonds with a coupon rate of 10 percent. The company will have to incur issuing and underwriting expenses of $600,000. ABC has a 40% tax rate. Should refinancing take place? Show your calculations