Fixed Income Technicals
Clean vs dirty price
Learning Outcome
5
Interpret pricing between coupon dates.
4
Calculate accrued interest and dirty price.
3
Understand the price–interest relationship.
2
Distinguish quoted and settlement prices.
1
Define clean price, dirty price, and accrued interest.
What is the Clean Price?
The Clean Price (also called the Flat Price) is the quoted price of a bond in the market, excluding any accrued interest. This is the price you see on Bloomberg terminals, in bond prospectuses, and in most market publications.
What is the Dirty Price?
The Dirty Price (also called the Full Price or Invoice Price) is the actual price paid by the buyer of the bond. It includes the Clean Price plus any accrued interest that has accumulated since the last coupon payment date.
What is Accrued Interest?
Accrued Interest is the portion of the next coupon payment that the seller has earned by holding the bond since the last coupon date. Since the buyer will receive the full coupon on the next payment date, they must compensate the seller for the days the seller held the bond.
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Formulae’s: Dirty Price = Clean Price + Accrued Interest |
Clean price vs Dirty price
Core Concepts (Slide 6)
Core Concepts (Slide 7)
Core Concepts (.....Slide N-3)
Summary
5
Build strong branding
4
Use different marketing channels
3
Target the right audience
2
Create and communicate value
1
Understand customer needs
Choose cool, soft colors instead of vibrant colors
Max 5 Points for Summary & Min 2
Quiz
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
Quiz-Answer
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
