The costs of bond refunding are the call premium and the underwriting costs on the old and new bond issue.
The underwriting cost on the OLD issue is not a cost of bond refunding.

Question

Quizplus · Accepted Answer

The underwriting cost on the old issue is still a cost associated with the bond refunding process, as it is a cost incurred in the process of issuing the original bonds that are now being refunded.

The Costs of Bond Refunding Are the Call Premium and the Underwriting