1. 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...