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chi20
#1 Posted : Tuesday, February 09, 2010 9:13:30 AM
Rank: Member

Joined: 10/24/2008
Posts: 223
hey gurus here, what is "dirty" and "clean" price as refered to in the bonds trading.
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mukiha
#2 Posted : Tuesday, February 09, 2010 9:35:55 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
dirty = inclusive of accrued interest. clean = exclusive accrued interest.

In Kenya we trade in dirty prices.

...now you will pass that exam, won't you?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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chi20
#3 Posted : Tuesday, February 09, 2010 9:46:47 AM
Rank: Member

Joined: 10/24/2008
Posts: 223
thanks Mukiha, i think im enlightened now
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FundamentAli
#4 Posted : Monday, February 15, 2010 1:35:59 PM
Rank: Veteran

Joined: 11/4/2008
Posts: 1,289
Location: Nairobi
@ Mukiha

Please explain in a layman's language. Is this interest the amount of interest due at that time from the day the bond was issued? Do bonds pay interest annually or bi-annually? Do bonds have financial years?
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kizee
#5 Posted : Monday, February 15, 2010 5:48:26 PM
Rank: Member

Joined: 1/9/2008
Posts: 537
correction
kenyan bonds trade at clean price...dirty pricing was dun away with becoz it skews the price of a bond..that said bonds interest semi annualy, thus accrued interest is the interest from the last interest payment to the date wen a buyer pays for a bond...i dont understand the concept of financial year...please explain
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Sasha
#6 Posted : Monday, April 12, 2010 12:08:32 PM
Rank: Veteran

Joined: 9/5/2007
Posts: 627
Bonds have an issue date! The coupon is paid annually but interest is compounded semi-annually from the issue date.

Agree with Kizee that Kenyan bonds trade at clean price.

@FundamentAli: Bonds don't have financial years. They have a maturity date when they can be redeemed depending on the type of bond.
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sparkly
#7 Posted : Monday, April 12, 2010 8:26:39 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
@sasha in the secondary treasury bond market whats the min you can invest, Whats the commission payable, do i buy through broker, is electronic trading available yet? a Clean price, how is the interest factored into the bond price? Does the price rise towards the interest date?
Life is short. Live passionately.
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Sasha
#8 Posted : Tuesday, April 13, 2010 8:06:22 AM
Rank: Veteran

Joined: 9/5/2007
Posts: 627
@sparkly: Since you've asked many questions, have a look at this

http://www.centralbank.g...bonds/Introduction.aspx

If you still have further questions, I will be obliged to answer to the limit of my knowledge!
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john p
#9 Posted : Monday, April 19, 2010 8:25:15 PM
Rank: New-farer

Joined: 4/6/2010
Posts: 14
Location: africa
@Sasha: i did a post on how to buy Treasury bills a while back.Used the CBK data.Go to the post HERE
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Impunity
#10 Posted : Thursday, November 24, 2011 7:59:35 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
When do you get the money if you buy a discounted bond and how is this done?
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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