Series 7: 3.4.2. Flat Bonds

3.4.2. Flat Bonds

Bonds are quoted at a flat price, also called a clean price, which means accrued interest is not factored into the quote. Bonds are traded at the dirty price, which includes accrued interest. Clean prices are more stable, and when they change, they do so for some economic reason, such as rising or falling interest rates o