The Difference Between the Clean Price and the Dirty Price

question 214

Multiple Choice

The difference between the clean price and the dirty price of a bond is:

• A) The dealer's spread.
• B) The rounding difference created when bonds are quoted in 64^ths.
• C) The accrued interest.
• D) The amount of interest that is in default.
• E) The difference between the current rate and the original coupon rate of a variable bond.

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Definitions:

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A movement that decreases the angle between two body parts, such as bending an elbow or knee.

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