In finance, the dirty price is the price of a bond including any interest that has accrued since issue or the most recent coupon payment. This is to be compared with the clean price, which is the price of a bond excluding the accrued interest.
Dirty Price = Clean Price + Accrued Interest
When bond prices are quoted on a Bloomberg Terminal or Reuters they are quoted using the clean price. The clean price is mostly quoted in the US bond markets. Given the quotes, traders tend to think of bonds in terms of their clean prices. The dirty price is mostly quoted in the European bond markets.
Read more about Dirty Price: Bond Pricing, Example
Famous quotes containing the words dirty and/or price:
“Major Bagley: So they really got the Arizona.
Captain Quincannon: Yes, sir. Hickham Field was hit just as bad as Pearl Harbor, lot of fifth column work.
Major Bagley: I’ve studied all the wars in history, gentlemen, and I’ve never come across any dirty treachery like that.”
—Dudley Nichols (1895–1960)
“One has to have run a household before one can know the price of rice and firewood, and one has to have raised children before one can understand a parent’s love.”
—Chinese proverb.