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:
“I know we’re not saints or virgins or lunatics; we know all the lust and lavatory jokes, and most of the dirty people; we can catch buses and count our change and cross the roads and talk real sentences. But our innocence goes awfully deep, and our discreditable secret is that we don’t know anything at all, and our horrid inner secret is that we don’t care that we don’t.”
—Dylan Thomas (1914–1953)
“For what were all these country patriots born?
To hunt, and vote, and raise the price of corn?”
—George Gordon Noel Byron (1788–1824)