Interest rate, bond problem

Question

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

Answer 1

If the bond only pays at maturity, it pays $20000 +\frac 8{12} \cdot 8\% \cdot 20000$ at the end of $7$ months. You are expected to discount at $9\%$ per year back to present value.

Answer 2

Assume the creditor sold the bond one month after acquiring it, the creditor receives

$$ 20000 \times \frac{1+0.08\cdot \frac {8}{12} }{ 1+0.09\cdot \frac {7}{12} } = 20015.8$$