dirty price


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Dirty price

Bond price including accrued interest, i.e., the price paid by the bond buyer.

Dirty Price

The price of a coupon bond that includes the present value of all future cash flows. That is, a dirty price is the price of a bond plus the interest that accrues between coupon payments. Therefore, the dirty price of a bond gradually increases between coupon payments, then retreats immediately after a coupon payment. Many European exchanges use the dirty price when quoting bond prices.

dirty price

The price of a bond including accrued interest. Compare clean price.
References in periodicals archive ?
they are quoted free from any accrued coupon in order to facilitate yield comparisons but the actual sale is on the basis of the dirty price, i.
With this course you learn how to set up the cash flows for a bond, which will enable you to calculate the clean price, the dirty price and yield to maturity.
The inclusion of both clean and dirty prices provides asset managers the ability to distinguish between capital earnings (coming from the clean price of a bond) and the interest earnings (coming from the coupon accruals) both for bonds and derivative instruments, providing a more holistic approach to valuation.
Venture, touting its "down and dirty prices on Hoover Vacs," offered consumers perusing its Nov.