part two pls

A corporate bond pays interest annually and has 3 years to maturity, a face value of $1,000 and a coupon rate of 3.8%. The bond's current price is $997.22. It is callable at a call price of $1,050 in one year. What is the bond's yield to maturity? Correct The annual coupon payment is: PMT= Coupon rate * Face value =3.8%1,000=38 To find the YTM, we have to use trial and error, a financial calculator or Excel (the RATEO or YIELDO functions). Using a financial calculator: Note that the current price of the bond (the PV) must be entered as a negative number. Calculating 1/Y gives a value of 3.9%, or 0.039 for YTM. Using Excel (do not enter the thousands separators): = RATE(nper, pmt, pv, fv) =RATE(3,38,997.22,1,000) =0.039 What is the bond's yield to call