QUICK DEFINITION
Dirty Price is the full cash price of a bond, equal to the clean price plus accrued interest.
WHY IT MATTERS
Why Dirty Price matters in bond markets
Dirty price is the amount that more closely reflects what changes hands at settlement.
MARKET CONTEXT
How to think about it
Bond investors use dirty price as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Dirty Price important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Dirty price is the amount that more closely reflects what changes hands at settlement.