What was the yield to maturity of this bond

Reference no: EM133377310

Question: In 2002, Berkshire Hathaway issued the first bond ever to have a negative coupon rate. Each bond had a face value of $1000, a maturity of 5 years, and paid a negative coupon which was paid annually. The coupon rate was -0.75%. In other words, every year a bondholder had to pay to Berkshire Hathaway $7.50 for holding a single bond. The price of this bond was 870.38. What was the yield to maturity of this bond when it was issued? Write answer to 2 decimal places without the percentage sign, e.g., write 5.75 for 5.75%.

Reference no: EM133377310

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