Five Years Ago, the State of Oklahoma Issued $2,000,000 of 7

Five years ago, the State of Oklahoma issued $2,000,000 of 7% coupon, 20-year semiannual payment, tax-exempt bonds.The bonds had 5 years of call protection, but now the state can call the bonds if it chooses to do so.The call premium would be 5% of the face amount.Today 15-year, 5%, semiannual payment bonds can be sold at par, but flotation costs on this issue would be 2%.What is the net present value of the refunding? Because these are tax-exempt bonds, taxes are not relevant.

A) $278,606
B) $292,536
C) $307,163
D) $322,521
E) $338,647