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:
“A dirty house in a gutted world,
A tatter of shadows peaked to white,
Smeared with the gold of the opulent sun.”
—Wallace Stevens (1879–1955)
“I sometimes think that the price of liberty is not so much eternal vigilance as eternal dirt.”
—George Orwell (1903–1950)