A bond pays coupons on $5/15$ and $11/15$ of each year. Today is $1/23/2003,$ and you want to buy this bond $($the settlement date is $1/24/2003,$ i$.$e$.,$ the date you start to hold the bond$).$ The date for accrued interest is $70,$ and the days for an interest payment cycle is $181$ days.

If the flat price on $1/23/2003$ is $$12,303\mathrm{.}125,$ what is the invoice price? The coupon rate is $12\%$ and the face value $($F$)$ is $$10,000.$

$($Hint: slide $13$ of Lect $15).$

Multiple Choice

$$10,000$

$$12,303\mathrm{.}125$

$$12,535\mathrm{.}17$

$$12,071\mathrm{.}081$