$3$

$2$ points

three months, and the current $3-$month interest rate at which funds can be loaned or borrowed is $8\%$ per year. The seller elects to deliver a Treasury bond issue with a conversion factor of $1\mathrm{.}20.$ Also assume that the accrued interest is $7.$ What is the invoice price that the buyer pays?

$$125,800$

$$127,100$

$$126,300$

$$124,600$