Understandingbond pricingis complex, sometimes even for experts. Markets quote bond prices in two different manners. They are dirty price and clean price. There is a difference in bond price quotes in Europe and the USA. European bond quotes are at their dirty price, while in the US, the b...
The dirty price is sometimes called the price plus accrued. In the United States, the clean price is quoted more often while in Europe, the dirty price is the standard. The dirty price allows a seller to calculate the actual cost of a bond since the bond might have accrued interest from ...
the dirty price would be $1,000 ($990 + $10). This means that the investor would have to pay $1,000 to purchase the bond, considering both the principal and the interest accrued since the last coupon payment.
double fixedBondImpliedValue1 = fixedBond1.cleanPrice();DatefixedBondSettlementDate1= fixedBond1.settlementDate();// standard market conventions:// bond's frequency + coumpounding and daycounter of the YieldCurvedouble fixedBondCleanPrice1 = BondFunctions.cleanPrice(fixedBond1, vars.termStructure, ...