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Derivatives

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  • November 7, 2021
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Dirty Price of Bond

The full price of a bond. It is calculated by adding accrued interest and any commissions or fees to the quoted price. In other words, the dirty price represents the cash price of a bond. For example, if accrued interest on a corporate bond is US$30, and the quoted bond price was US$ 950, then, the clean price is said to be US$950, while the dirty price is the sum of US$950 and US$30, which is US$ 980.


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