United brits ltd has a bond outstanding that carries a 10% coupon rate paid annually. Current bonds yield are 7.5%. it has 30 million outstanding and 12 years left to maturity. a new issue would require $500,000 for floatation costs, and the existing issue has been written off all its floatation expenses. An overlap period of 30 days would be anticipated during which the money market rates would be 2.5%. United brits ltd has a tax rate of 30%. the call premium on the outstanding issue is currently at 10%. Calculate if refunding would be justified.