Clean price

clean price investment & finance definition
The price of a bond without accrued interest. Compare dirty price.
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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.

Clean price
Definition:
Bond price excluding accrued interest. ...

Clean price: The price at which traders buy and sell bonds is called the clean price, it excludes any accrued interest associated with the bond coupon, (see dirty price).

clean price
Price of a bond excluding accrued interest. Bond prices are usually quoted clean.
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Clean price
An exchange rate that is not materially effected by official intervention.
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Flat price (also clean price)
The quoted newspaper price of a bond that does not include accrued interest. The price paid by the purchaser is the full price.

clean price Definition: The quoted bond price without the accrued interest. (Cf. dirty price.)
Application: In the U.S. bond market, if you ask your broker a bond's price, he quotes the clean price.

The price for bonds ignores this element and quotes the price of bonds without accrued interest - it's said to be a 'clean price' as opposed to a 'dirty price', which includes accrued interest.

See also: Interest, Share, Market, Accrued Interest, Bond