No, you are wrong. You are making the common error of taking the $2.0625 annual dividend and dividing it by $21 to get 9.8%. That is not the true yield. First of all, the dividend is $0.515625 four times a year to get $2.0625. But you are forgetting that if the stock is called on the Call Date you will be getting the $0.515625 plus $4.00 since you bought at $21. Secondly, you have a time series of future dispersments that are being made to you. So all the $0.515625 dividends are not equal since they are offset in time. The easiest way to approach this is to calulate the Present Worth of all the future dividends and add that to the Present Worth of the future $4.00. Well, if you get a text on engineering economics or perhaps just Google Rate of Return, you will find that for this type of problem you cannot directly calculate the interest. It is a trial and error process until you converge on a solution. To be continued -.