Dirty price

How it is used

Also called full price; distinguish the quoted percentage from the total amount for a given holding.

Example sentences

1. The dirty price was higher than the clean price because interest had accrued.

   Accrued coupon interest adds to the quoted clean price.

2. The settlement team used the dirty price to calculate the bond purchase amount.

   The payable amount incorporates the interest component.

Common collocations

• bond dirty price
• calculate the dirty price

Related terms

• bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.
• settlementThe final step of a payment or trade, when money or securities actually move from one party to the other and the deal is complete.

More terms: Treasury & Markets

• treasury
• yield
• securities
• derivative
• forward contract
• swap
• repo
• clean price
• duration
• convexity
• initial margin
• variation margin