The Hudson Corporation has a $15 million bond obligation outstanding which it is considering refunding. Though the bonds were initially issued at 9 percent, the interest rates on a similar issue have declined to 7.2 percent. The bonds were originally issued for 15 years and have 10 years remaining. The new issue would be for 10 years. There is a 9 percent call premium on the old issue. The underwriting cost on the new $15,000,000 issue is $200,000, and the underwriting cost on the old issue was $450,000. The company is in the 30 percent tax bracket and it will use a 5 percent discount rate (rounded after-tax cost of debt) to analyze the refunding decision. Should the old issue be refunded with the new debt?