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Generally speaking I have my own little stubborn way of calculating effective annual yield. I just take the annual interest number and divide it by what I paid for the bond and presto. I know this is not the exact methodology but usually it comes pretty close when I compare to quote services.

Right now I came across these Berkshire Hathoway/Burlington Long term bonds.

Redemption 2045
Coupon 3.2%
Selling price $60.50

The quoted yield is pretty close to 6%. However when I do the math (annual coupon of $32 divided by selling price of $605), I come up with 5.28%. Is there a quick way to properly account for something like these notes that are selling at such a steep discount to par to come up with 5.9% like its being quoted?

Thanks
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