Galifre Educational issues $5 million in 14.500% bonds maturing April 20, 2028. The bond is callable April 20, 2022 at a call premium of 13.750%.

April 20, 2022 the prevailing yield is 2.250%. If Galifre Educational calls the entire issue and replaces it with 2.250% bonds also maturing April 20, 2028 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.