A bond is quoted at a price of $989.This price is referred to as which one of the following?

Question

Quizplus · Accepted Answer

The clean price of a bond is the quoted price without including any accrued interest or fees. This price is what an investor would pay to purchase the bond. The dirty price, on the other hand, includes any accrued interest or fees and is the actual price the investor would pay to purchase the bond, while face value is the amount the bond will be worth at maturity. Call price refers to the price at which a callable bond can be redeemed by the issuer, and wholesale price generally refers to a price for large quantities of a product.

A Bond Is Quoted at a Price of $989