Costs of bond refunding are the call premium and the underwriting cost on the new bond issue.

Name: Costs of bond refunding are the call premium and the underwriting cost on the new bond issue.
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When a bond is refunded, the issuer may need to pay a call premium to retire the old bonds before maturity. Additionally, if the issuer decides to issue new bonds to replace the old ones, there will be underwriting costs associated with the new bond issue. Therefore, the statement is true.

Costs of Bond Refunding Are the Call Premium and the Underwriting