clean price

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Clean price

Bond price excluding accrued interest.

Clean Price

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.

clean price

The price of a bond without accrued interest. Compare dirty price.
References in periodicals archive ?
Because the quoted price on a bond is the clean price, it is more convenient to work with the clean price than the simple price.
Therefore, in this case, the clean price approximately equals the par value:
In the last example, the clean price is determined by
Figure 2 shows the clean price as a function of the time in half-years to the first coupon payment.
Quotations of the corresponding clean price, accrued interest, total price and consideration are, however, easily prepared.
For airlines who don't want to actively trade carbon emissions, a clean price is perfect," said the Environment and CSR Manager of a major Northern European airline.
The inclusion of both clean and dirty prices provides asset managers the ability to distinguish between capital earnings (coming from the clean price of a bond) and the interest earnings (coming from the coupon accruals) both for bonds and derivative instruments, providing a more holistic approach to valuation.
With this course you learn how to set up the cash flows for a bond, which will enable you to calculate the clean price, the dirty price and yield to maturity.
Bids are invited from the Primary Dealers in Treasury Bonds on the basis of clean prices (exclusive of accrued interest from the date of issue of the series to the date of settlement).
Added to this is the problem of vendors, such as fleet and contract hire disposers, insisting on achievingCAP Clean prices for cars which are closer to CAP Average condition.
Yield prices can be calculated from clean prices using either the Monaco formula or the RBA/RBNZ formula for Australia / New Zealand.