Five years ago, Sams Inc. issued $30000000 of 30 year, 11% coupon semi annual bonds which are callable at 110% of par value. Sams Inc is now considering refunding the issue because the market interest rate is now at 9%. Flotation costs on the old issue are being amortized on a straight line basis over the life of the bonds. The unamortized portion amounts to $375000. Flotation costs on the new bond issue would be 2%. (straight line amortization). The new issue would have a 25 year maturity. Sams Inc marginal tax rate is 40%. Should the bonds be refunded?