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:
“Wherever a man goes, men will pursue him and paw him with their dirty institutions, and, if they can, constrain him to belong to their desperate odd-fellow society.”
—Henry David Thoreau (1817–1862)
“The price we pay for the complexity of life is too high. When you think of all the effort you have to put in—telephonic, technological and relational—to alter even the slightest bit of behaviour in this strange world we call social life, you are left pining for the straightforwardness of primitive peoples and their physical work.”
—Jean Baudrillard (b. 1929)