Galifre Educational issues $4 million in 9.750% bonds maturing November 16, 2041. The bond is callable November 16, 2026 at a call premium of 3.000%.

November 16, 2026 the prevailing yield is 6.500%. If Galifre Educational calls the entire issue and replaces it with 6.500% bonds also maturing November 16, 2041 then,

Each semi-annual coupon payment will decrease by $ ___?___

The present value of the decrease in coupon payments is $ ___?___

The principal repayment at maturity will increase by $ ___?___

The present value of the increase in the principal repayment is $ ___?___

The present value of this decision to the company - to the nearest dollar - is $ ___?___

The company should (CALL? / NOT CALL?)the bond.