Dirty price

Dirty price is referred to the price of a bond including the accrued interest which is earned between the coupon payment dates. Dirty price is calculated by discounting the future cash flows of the bond including interest accruing on the next coupon payment. As the coupon payment date approaches, the accrued interest increases and finally the clean price and the dirty price become equal on the day of coupon payment. Dirty price is quoted for bonds in European markets.

Dirty Price = Clean Price + Accrued Interest