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:
“O Jesse had a wife, a mourner all her life
And the children they were brave,
But the dirty little coward that shot Mr. Howard
He laid Jesse James in his grave.”
—Administration in the State of Miss, U.S. public relief program (1935-1943)
“Cecil Graham: What is a cynic?
Lord Darlington: A man who knows the price of everything and the value of nothing.”
—Oscar Wilde (1854–1900)