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Management · Q294

International Finance and Treasury

Graduate and Post Graduate · Management · question 294

Q294

Sum of purchase price and accrued interest on treasury bonds and notes is considered as

A.
dirty price
Answer
B.
clean price
C.
paid price
D.
unpaid price

Answer: Option A

Solution

Answer: Option A
Solution:
Sum of purchase price and accrued interest on treasury bonds and notes is considered as dirty price. A dirty price is a bond pricing quote, which refers to the cost of a bond that includes accrued interest based on the coupon rate.