476 B
476 B
When you buy a bond between coupon dates, the seller has earned interest for the days they held the bond since the last coupon — but they won't be the ones receiving the next coupon payment, you will. So you compensate them by paying accrued interest on top of the quoted price.
The total you actually pay is called the dirty price:
- Clean price = quoted price (what you see listed)
- Dirty price = clean price + accrued interest (what you actually pay)