personal-finance
What is 'Dirty Price' in traded bonds?
Apr 28, 03:04

A bond's face value is usually Rs 1,000 and that is what you pay for it on the day of its issue. But its traded price can be different. Post-listing, a bond enters the secondary market and its traded price comes into effect. The traded price fluctuates with demand-supply and macro factors, and it changes every day to reflect accrued interest, until the interest-payment date. A traded price that includes accrued interest to date is called the ‘dirty price'. Once the interest is paid, the traded price of the bond reduces to the extent of the interest payment.

COST OF BONDS MINI GFX