Clean Price

In finance, the clean price is the price of a bond excluding any interest that has accrued since issue or the most recent coupon payment. This is to be compared with the dirty price, which is the price of a bond including the accrued interest.

Clean Price = Dirty Price - Accrued Interest

When bond prices are quoted on a Bloomberg Terminal or Reuters they are quoted using the clean price. The clean price is mostly quoted in the US bond markets. Given the quotes, traders tend to think of bonds in terms of their clean prices.

Clean prices are more stable over time than dirty prices – when clean prices change, it is for an economic reason, for instance a change in interest rates or in the bond issuer's credit quality. Dirty prices, on the other hand, change day to day depending on where the current date is in relation to the coupon dates, in addition to any economic reasons.

Bond market
  • Bond
  • Debenture
  • Fixed income
Types of bonds by issuer
  • Agency bond
  • Corporate bond
  • Distressed debt
  • Emerging market debt
  • Government bond
  • Municipal bond
Types of bonds by payout
  • Accrual bond
  • Auction rate security
  • Callable bond
  • Commercial paper
  • Convertible bond
  • Exchangeable bond
  • Extendible bond
  • Fixed rate bond
  • Floating rate note
  • High-yield debt
  • Inflation-indexed bond
  • Inverse floating rate note
  • Perpetual bond
  • Puttable bond
  • Reverse convertible
  • Zero-coupon bond
Bond valuation
  • Clean price
  • Convexity
  • Coupon
  • Credit spread
  • Current yield
  • Dirty price
  • Duration
  • I-spread
  • Mortgage yield
  • Nominal yield
  • Yield to maturity
  • Z-spread
Securitized products
  • Asset-backed security
  • Collateralized debt obligation
  • Collateralized mortgage obligation
  • Commercial mortgage-backed security
  • Mortgage-backed security
  • Yield-curve spread
Bond options
  • Callable bond
  • Convertible bond
  • Embedded option
  • Exchangeable bond
  • Extendible bond
  • Option-adjusted spread
  • Puttable bond
Institutions
  • Commercial Mortgage Securities Association (CMSA)
  • International Capital Market Association (ICMA)
  • Securities Industry and Financial Markets Association (SIFMA)


Other articles related to "price, clean price, prices":

Bond Valuation - Clean and Dirty Price
... bond is not valued precisely on a coupon date, the calculated price, using the methods above, will incorporate accrued interest i.e ... The price of a bond which includes this accrued interest is known as the "dirty price" (or "full price" or "all in price" or "Cash price") ... The "clean price" is the price excluding any interest that has accrued ...
Dirty Price - Bond Pricing
... The dirty price of a bond will decrease on the days coupons are paid, resulting in a saw-tooth pattern for the bond value ... from the value determined by the dirty price to arrive at the clean price ... The clean price more closely reflects changes in value due to issuer risk and changes in the structure of interest rates ...
Dirty Price
... In finance, the dirty price is the price of a bond including any interest that has accrued since issue or the most recent coupon payment ... This is to be compared with the clean price, which is the price of a bond excluding the accrued interest ... Dirty Price = Clean Price + Accrued Interest When bond prices are quoted on a Bloomberg Terminal or Reuters they are quoted using the clean price ...

Famous quotes containing the words price and/or clean:

    I was like a social worker for lepers. My clients had a chunk of their body they wanted to give away; for a price I was there to receive it. Crimes, sins, nightmares, hunks of hair: it was surprising how many of them has something to dispose of. The more I charged, the easier it was for them to breathe freely once more.
    Tama Janowitz (b. 1957)

    You’re a woman who’s been getting nothing but dirty breaks. Well, we can clean and tighten your brakes, but you’ll have to stay in the garage all night.
    S.J. Perelman, U.S. screenwriter, Arthur Sheekman, Will Johnstone, and Norman Z. McLeod. Groucho Marx, Monkey Business, a wisecrack made while trying to woo Lucille Briggs (Thelma Todd)