Company XYZ issued a ten-year corporate bond three years ago. The bond has 8% coupon rate, par value of $1,000 and pays interest semiannually. If the current interest rate is 6.5%, should XYZ call the bond?

• Yes because it can decrease payments if XYZ calls the bond and issues a new one
• No because it is an extremely attractive investment compared to other corporate bonds
• No because if XYZ issues a new bond, investors will be greatly exposed to financial risk
• Yes because it decreases investors exposure to reinvestment risk