cash-price

  1. Nicole Seaman

    YouTube T3-24: Quote versus cash price of US Treasury bill

    A US Treasury bill is a (money market) discount instrument: the quoted price represents a discount from the face value. In this example, a quote price of 8.00 on a 90-day US Treasury bill implies a cash price of $98.00 and a true interest rate of 8.163% per annum David's XLS is here...
  2. Nicole Seaman

    YouTube T3-23: Full versus flat bond price (aka, cash vs. quoted or dirty vs. clean price

    The bond's present value (DCF) at any given point in time is called its "full price" (aka, cash, dirty). This full price is discontinuous because coupons pay discontinuously. If we subtract the accrued interest (AI) from the full price, we get the "flat price" (aka, quoted, clean). It is the...
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