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.
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.