The all-inclusive price of a bond. That is, the market price of a bond or a similar fixed-income security in addition to any accrued interest. This is the price that is actually paid for the bond in the market. Put another way, it is the clean price (quoted price) of a bond plus accrued interest:
All-in price = clean price + accrued interest
For example, if the all-in price of a bond is quoted as 98.5, this means the buyer would pay, for every $100 nominal of the bond, a price of $98.5. Assume the bond has a coupon of 7.5% and trades ex-dividend where the coupon date is 10 days away. The accrued interest and the all-in price are calculated as follows:
Accrued interest = – 7.5 × 10/365 = – 0.2055
All-in price = 98.5 – 0.2055 = 98.2945
This price is generally rounded to the nearest 0.01.
It is also known as the gross price or dirty price.
