Which one of the following statements is correct?

Question

Quizplus · Accepted Answer

Accrued interest represents the amount of interest that has accumulated on a bond since the last coupon payment, but has not yet been paid to the bondholder. The invoice price of a bond is the price that the buyer of the bond must pay to receive the bond, including any accrued interest. Therefore, the invoice price is equal to the flat price (the price of the bond without any accrued interest) plus the accrued interest. Therefore, the correct statement is Invoice price = Flat price + Accrued Interest.

Which One of the Following Statements Is Correct