Finicade
🔍 Sign in
Markets & Instruments

Clean Price vs Dirty Price

Also called: clean price, dirty price, full price

The clean price is a bond's price excluding accrued interest; the dirty price is what you actually pay. Bonds are quoted clean because the clean price moves smoothly with yields, while the dirty price sawtooths upward between coupon dates and drops each time one is paid. Confusing the two is a classic settlement error, and it's why a bond can look like it fell 2% on a day when nothing happened but a coupon.

Formula

Dirty price = Clean price + Accrued interest

← All Markets & Instruments terms