In this case, I made a glaring mistake projecting the yield of Astrea IV bonds, taking the coupons and dividing it by market price to get more than 4% yields. One of my students is a brilliant CFA III candidate and he pointed out my mistake immediately after punching numbers into his Texas BA II calculator.
I have overestimated the yield to maturity of the bond.
The tragedy is that Astrea IV is that it has a provision that allows it to be called or cancelled in June 2023. This means that in June 2023, I will get back to $1000 of my money and 6 months worth of coupon payments even though the market price right now is a $1,080
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