The invoice price of a bond

Question

Quizplus · Accepted Answer

The invoice price of a bond is calculated as the stated price of the bond plus the accrued interest from the date of the last coupon payment up to the sale date. Therefore, it is the price that a buyer would have to pay if they purchase the bond, and it takes into account the interest that has accumulated since the last coupon payment. The quoted price of a bond can refer to a variety of prices, such as the bid or ask price, and may not necessarily reflect the invoice price. Hence, option B is not correct. Therefore, the statement "only A and C" is the best choice.

The Invoice Price of a Bond