What does 'Dirty Price' mean
A dirty price is a bond pricing quote referring to the price of a coupon bond that includes the present value of all future cash flows, including interest accruing on the next coupon payment . The dirty price is how the bond is quoted in most European markets, and it is the price an investor pays to acquire the bond.
BREAKING DOWN 'Dirty Price'
Accrued interest is earned when a coupon bond is currently in between coupon payment dates. As the next coupon payment date approaches, the accrued interest increases until the coupon is paid. Immediately following the coupon payment, the clean price and dirty price will be equal.The dirty price is sometimes called the price plus accrued. The clean price is quoted more often in the United States.
The dirty price allows a seller to compensate for the fact that known accrued interest payments will be redirected to the buyer. This helps the seller get as much as possible out of the investment prior to releasing it to the buyer, and it provides flexibility in regards to the exact date of the sale. Otherwise, buyers may learn to time to purchase to gather the largest amount of accrued interest, essentially shortchanging the seller, which could lead sellers to limit the days the bond could be for sale.
Accrued Interest
Since interest accrues at a steady rate on a bond, the amount earned can be calculated on a daily basis. This means that the dirty price will change on a daily until the payout, or coupon payment, date. Once the payout is complete, and the accrued interest resets to zero, the dirty and clean price are the same.
In the case of bonds offering semiannual payments, the dirty price would rise slightly higher every day over the course of six months. Once the sixmonth mark is hit and the coupon payment is made, the accrued interest resets to zero to begin the cycle again. This continues until the bond reaches maturity.
Dirty Versus Clean Pricing
The dirty price is generally quoted between brokers and investors, which is common in some markets. The clean price, or the price of the bond without accounting for accrued interest, is often considered the published price. This may be the amount that would be recorded in a newspaper or another financial resource used for price tracking, and it is often considered to reflect the value of the bond within the current marketplace. The clean price may also be known as the flat price.

Clean Price
The price of a coupon bond not including any accrued interest. ... 
Flat Bond
A debt instrument that is sold or traded without accrued interest, ... 
Coupon Rate
The yield paid by a fixed income security. A fixed income security's ... 
Coupon Bond
A debt obligation with coupons attached that represent semiannual ... 
ZeroCoupon Bond
A debt security that doesn't pay interest (a coupon) but is traded ... 
Current Coupon Bond
A bond with a coupon rate that is within 0.5\% of the current ...

Investing
What is a Dirty Price?
The dirty price of a bond includes the present value of all future cash flows. 
Financial Advisor
Using Excel PV Function to compute Bonds PV
To determine the value of a bond today  for a fixed principal (par value) to be repaid in the future at any predetermined time  we can use an Excel spreadsheet. 
Investing
How Does A Bondâs Coupon Interest Rate Affect Its Price?
All bonds come with a coupon interest rate, which is the fixed annual interest a bond pays. 
Investing
What's Accrued Interest?
Accrued interest has two meanings. In accounting, it is interest that has been earned, but the time for payment has not yet occurred. 
Investing
What is a "Coupon"?
In the financial world, âcouponâ represents the interest rate on a bond. 
Investing
Comparing Yield To Maturity And The Coupon Rate
Investors base investing decisions and strategies on yield to maturity more so than coupon rates. 
Investing
Explaining the Coupon Rate
Coupon rate is the stated interest rate on a fixed income security. 
Investing
Understanding Bond Prices and Yields
Understanding this relationship can help an investor in any market. 
Personal Finance
Coupon Shopping: Clip Your Way To Savings
Use coupons strategically to score big savings on everyday purchases. 
Financial Advisor
Simple Math for FixedCoupon Corporate Bonds
A guide to help to understand the simple math behind fixedcoupon corporate bonds.

What does 100plus accrued interest mean?
Find out what it means when a bond is quoted at "100plus accrued interest," and why it might be a more accurate reflection ... Read Answer >> 
How do you find accrued interest on a bond?
Learn how to determine the accrued interest on a bond. The price in the secondary market reflects the accrued interest the ... Read Answer >> 
What is accrued interest, and why do I have to pay it when I buy a bond?
A bond represents a debt obligation whereby the owner (the lender) receives compensation in the form of interest payments. ... Read Answer >> 
How does a bond's coupon interest rate affect its price?
Find out why the difference between the coupon interest rate on a bond and prevailing market interest rates has a large impact ... Read Answer >> 
How does a bond's coupon rate affect its price?
Find out how a bond's coupon rate influences its price, including the role of governmentdictated interest rates and the ... Read Answer >>