The clean price is a bond's price without the interest earned since the last coupon; the dirty price is the clean price plus that accrued interest. The buyer pays the dirty price.
Prices are quoted clean so that they do not jump on each coupon date. If a 9% bond with half-yearly coupons is quoted at 101.00 and 60 days have passed in a 182-day period, the accrued interest is 4.50 × 60 ÷ 182 = 1.48, so the dirty price is 102.48 per ₹100 of face value.
Related
Related terms: Accrued interest · Yield to maturity (YTM) · Face value
Before investing, look up the issuer: all its outstanding bonds, rating history and disclosure documents.
This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.
