AuthorTopic: Clean and Dirty prices
@2014-06-19 07:26:00
Okay, heres an issue im having trouble getting round my head. Say you have a $100, 10% coupon annual bond with a YTM of 10%. Assume the YTM stays the same throughout the bonds life. Is the clean price always $100 whilst the dirty price is $100 just after the coupon payment and $110 just before the coupon payment?
@2014-06-25 20:27:00

What you say is correctly:

Dirty price = price on the exchange + interest
Clean price = just the actual price om the exchangee

CFA Discussion Topic: Clean and Dirty prices

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I used your notes and passed ... highly recommended!