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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.

Formula
Invoice Price=Clean Price+Accrued Interest\text{Invoice Price} = \text{Clean Price} + \text{Accrued Interest}