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Comparatively, the dirty price is the price of a bond including the accrued interest. Therefore, Clean Price = Dirty Price − Accrued Interest. In Bloomberg Terminal or Reuters, bond prices are quoted using the clean price. Traders tend to think of bonds in terms of their clean prices. Clean prices are more stable over time than dirty prices.
In finance, the dirty price is the price of a bond including any interest that has accrued since issue of 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
The "clean price" is the price excluding any interest that has accrued. Clean prices are generally more stable over time than dirty prices. This is because the dirty price will drop suddenly when the bond goes "ex interest" and the purchaser is no longer entitled to receive the next coupon payment.
The price you pay for a bond may be different from its face value, and will change over the life of the bond, depending on factors like the bond’s time to maturity and the interest rate environment.
However, the bond’s yield, calculated by dividing the coupon payment by the bond’s market price, fluctuates inversely with the bond’s price. When bond prices rise, yields decrease and vice ...
The price including accrued interest is known as the "full" or "dirty price". (See also Accrual bond.) The price excluding accrued interest is known as the "flat" or "clean price". Most government bonds are denominated in units of $1000 in the United States, or in units of £100 in the United Kingdom. Hence, a deep discount US bond, selling at ...
“The dirty secret nobody talks about is how much all this is going to cost and who's willing to pay for it,” Woods, who replaced Rex Tillerson at the helm of Exxon Mobil in January 2017, said ...
Yield to put (YTP): same as yield to call, but when the bond holder has the option to sell the bond back to the issuer at a fixed price on specified date. Yield to worst (YTW): when a bond is callable, puttable, exchangeable, or has other features, the yield to worst is the lowest yield of yield to maturity, yield to call, yield to put, and others.