A callable bond pays annual interest of $40, has a par value of $1,000, matures in 20 years but is callable in 8 years at a price of $1,032, and has a value today of $1,065.84. The yield to call on this bond is a) 3.40% b) 4.12% c) 2.10% d) 5.00% e) 3.14%