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

Nicole Seaman

Director of FRM Operations
Staff member
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 flat price smoothly "pulls to par."

David's XLS is here:

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