3. IBM's bonds have 9 years and 9months remaining to maturity. Interest is paid annually, with the first coupon payment due 9 months from today. The bonds have a $1000 par value, coupon interest rate of 8% and a yield to maturity of 9%. Find the price of the bond today. 3 month |----- 9 months 80 9 years 0 N = 9 actual PMT80 Accrued Interest months 80 3/12 = 20 cash valve FV = 1000 Coupon 940.05+80 I/ Y = 9 (1+0.09) 29/12/PV=940.05 Days (months) since last payment Days (months) separating each pay ment calculated = 956.21 (Flat price) Invoice Price = Flat price when asked for the price of bond never have to answer