There is a make whole call on that bond issue. This means that if you call the bonds early you basically have to make the bondholders "whole" and pay a premium to par such that they would be reimbursed for the 8.625% lost for the time period of early redemption. The bonds were trading on December 4 at about 104 because of this above market yield.
Higher interest rates should result in two opposing forces. Higher interest income on NEW money to invest offset by lower valuations on the existing fixed income portfolio. It seems to me that fixed income pricing has already factored in the first rate hike...maybe even a second one.