Question
What does the dirty price represent?
Multiple choice question.
It includes the quoted price and interest accrued since the last coupon payment.
It represents the quoted price for a bond
It represents the average price of bonds with similar ratings
It represents the historical issue price of a bond
Multiple choice question.
It includes the quoted price and interest accrued since the last coupon payment.
It represents the quoted price for a bond
It represents the average price of bonds with similar ratings
It represents the historical issue price of a bond
Answers
GPT-4o mini
The correct answer is:
**It includes the quoted price and interest accrued since the last coupon payment.**
The dirty price of a bond encompasses both the clean price (the quoted price) and the accrued interest that has accumulated since the last coupon payment.
**It includes the quoted price and interest accrued since the last coupon payment.**
The dirty price of a bond encompasses both the clean price (the quoted price) and the accrued interest that has accumulated since the last coupon payment.