I am trying to solve the following problem:
Debtor issued a bond on 20 000€ (including interest rate) with maturity rate of 8 months and interest rate of 8% per annum. Month later, the creditor sold the bond to a different person, who discount the bond with 9% interest rate p.a.
How much did the creditor receive for the bond?
My solution is the following:
$FutureValue$ $= P(1+i*t*t/12) = 20000(1+0,08*8*8/12) = 28533$
Is it correct? Thanks