Invoice Price (Dirty Price)
The total price paid for a bond — clean price plus accrued interest.
Invoice price (also called dirty price or full price) is what the buyer actually pays: it equals the clean price plus accrued interest. If a bond is quoted at 98.50 (clean) and has $2.50 of accrued interest, the invoice price is 101.00. The seller receives compensation for the interest earned since the last coupon payment. Think of it as the total checkout price: the clean price is the item price, and accrued interest is like sales tax — not part of the quoted price, but you still have to pay it. Invoice price ensures fairness: without accrued interest, sellers would be penalized for selling between coupon dates, and buyers would get a windfall by collecting a full coupon they didn't fully earn.
Current Yield
Annual coupon income divided by the bond's clean price.
Running Yield
Annual coupon income divided by the bond's dirty price (clean price plus accrued interest).
Yield to Maturity (YTM)
The annualized return if you hold the bond to maturity, assuming all coupons are reinvested at the same rate.
Dirty Price
The total settlement price paid for a bond, including accrued interest.
Clean Price
The quoted bond price excluding accrued interest.
Accrued Interest
Interest that has accumulated since the last coupon payment, paid by the buyer to the seller.