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:
“There is no release
In a bodkin or disease,
Nor can there be a work so great
As that which cleans man’s dirty slate.”
—William Butler Yeats (1865–1939)
“I have asked a lot of my emotions—one hundred and twenty stories. The price was high, right up with Kipling, because there was one little drop of something, not blood, not a tear, not my seed, but me more intimately than these, in every story, it was the extra I had. Now it has gone and I am just like you now.”
—F. Scott Fitzgerald (1896–1940)