Which one of the following statements is correct?

A) invoice price = flat price - accrued interest
B) invoice price = flat price + accrued interest
C) flat price = invoice price + accrued interest
D) invoice price = settlement price - accrued interest

Invoice Price

The price initially charged by a manufacturer to a retailer, before any deductions or discounts are applied.

Flat Price

The price of a bond excluding any accrued interest, representing the bond’s value in the market without considering the interest that has accumulated since the last payment.

Accrued Interest

The amount of interest that has accumulated on a bond or loan but has not yet been paid by the borrower.