Dirty Price


DEFINITION of 'Dirty Price'

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 is the price an investor will pay to acquire the bond.


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.

  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Coupon Bond

    A debt obligation with coupons attached that represent semiannual ...
  3. Clean Price

    The price of a coupon bond not including any accrued interest. ...
  4. Bearer Form

    A security not registered in the issuing corporation's books ...
  5. Zero-Coupon Bond

    A debt security that doesn't pay interest (a coupon) but is traded ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when ...
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