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:
“All parents occasionally have ambivalent feelings toward their children. We love our kids, but there are times when we don’t really like them, or at least we can’t stand what our children are doing. But most of us keep those feelings to ourselves, as if it’s dirty little secret. It doesn’t fit in with our images of what we should do and feel as parents.”
—Lawrence Kutner (20th century)
“And is the price for your acceptance for me to conform? To be as you would want me to be?... You must accept me as I am. Do not question.... If my behavior seems different perhaps it is because it serves a higher purpose than to find acceptance in this dull and useless world.”
—Pat Fielder, and Paul Landres. Dracula (Francis Lederer)