Roxy Internationa Is Considering Retiring a $280 Million Bond Issue

Roxy Internationa is considering retiring a $280 million bond issue sold to the public 15 years ago.The original maturity was 25 years.If the bonds were initially sold at 98,then what is the after-tax cash flow effect,today,of the accelerated amortization if Roxy is in the 35% marginal tax bracket?

A) $224,000
B) $1,960,000
C) $784,000
D) $78,400