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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The price of a coupon bond that does not include any interest that accrues. That is, a clean price is the price of a bond discounting future cash flows. Because the dirty price does include interest between coupon payments, the dirty price and the clean price will equal each other only immediately following a coupon payment. Most American exchanges use the clean price when quoting bond prices.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The price of a bond without accrued interest. Compare dirty price.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.