Delta Corporation has a $30 million bond obligation outstanding, which it is considering refunding. Though the bonds were initially issued at 7 percent, the interest rates on similar issues have declined to 4.6 percent. The bonds were originally issued for 10 years and have 6 years remaining. The new issue would be for 6 years. There is a 5 percent call premium on the old issue. The underwriting cost on the new $30,000,000 issue is $600,000, and the underwriting cost on the old issue was $750,000. The company is in a 25 percent tax bracket, and it will allow a overlap period of one month. Treasury bills currently yield 1 percent. Should the old issue be refunded with new debt?