A firm has 14% 10-year, Rs 5,00,000 debentures. They were issued five years ago involving a floatation cost of Rs 20,000. The debentures have call features with a premium of Rs 50,000. Now the firm is...

A firm has 14% 10-year, Rs 5,00,000 debentures. They were issued five years ago involving a floatation cost of Rs 20,000. The debentures have call features with a premium of Rs 50,000. Now the firm is issuing 10% 8-year, Rs 5 lakh debentures involving a floatation cost of Rs 25,000. Tax rate is 30%. Is refunding a viable option?