Fixed Income
Dirty Price
Definition
What is Dirty Price?
A bond's clean priceA bond price quoted without accrued interest. plus accrued interestInterest earned since the last coupon date but not yet paid..
Example in practice
How This Looks in Practice
The investorA person or organisation that commits capital with the expectation of a financial return. pays the dirty price when the trade settles.
Keep learning
Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.