Q&A
Ask and answer questions to make information more available to wider audiences.
Summer Miller
@millersummer85 21, Apr 2023 12:00 AM
clean and dirty price of a bond
What is a clean and dirty price of a bond?
answers 1
Answer 1
Julianna Mitchell
@mitchelljulianna 28, Apr 2023 10:32 AM
Clean price is a price of a coupon bond not including the interest accrued. In other words, the clean price is the present value of the discounted future cash flows of a bond excluding the interest payments. Dirty price of a bond includes accrued interest in the calculation of bond. Dirty price of the bond is the present value of the discounted future cash flows of a bond which include the interest payments made by the issuing entity.