The ABC company currently has 50 million worth of 16 percent long-term bonds outstanding. These bonds will mature in 10 years and can be called at a premium of 7 percent. At present, the company can float a new issue of similar bonds with a coupon rate of 14 percent. After tax issuing and underwriting expenses will be 500000 and the corporate tax rate is 40 percent. Should the refunding take place?