Thea Corp. has a $$10$ million bond obligation outstanding which it is considering refunding. The bondswere issued at $12\%$ and the interest rates on similar bonds have declined to $9\%.$ The bonds have $12$years of their $20-$year maturity remaining. Thea will pay a call premium of $8\%$ and will incur underwritingcosts of $$400,000$ immediately. The company is in a $40\%$ tax bracket. There is no overlap interest period.Should the old issue be refunded? Give detailed answer.