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The price of a 20 year, 12% bond is $875. There is an option, and the firm may purchase the bond back in 4 years.

The price of a 20 year, 12% bond is $875. There is an option, and the firm may purchase the bond back in 4 years. Derive the yield to maturity and the yield to call.

Please answer without the use of a financial calculator with all work shown.

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