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Clean Price Formula

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Clean Price of a bond refers to the price an investor pays to buy the bond without considering any accrued interest. Check FAQs

P clean = P dirty - AI

P_clean - Clean Price?P_dirty - Dirty Price?AI - Accrued Interest?

Clean Price Example

With values

With units

Only example

Here is how the Clean Price equation looks like with Values.

Here is how the Clean Price equation looks like with Units.

Here is how the Clean Price equation looks like.

57.5 = 63 - 5.5

57.5 = 63 - 5.5

57.5 = 63 - 5.5

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Clean Price Solution

Follow our step by step solution on how to calculate Clean Price?

FIRST Step Consider the formula

P clean = P dirty - AI

Next Step Substitute values of Variables

∴

P clean = 63 - 5.5

Next Step Prepare to Evaluate

∴

P clean = 63 - 5.5

LAST Step Evaluate

∴

P clean = 57.5

Clean Price Formula Elements

Variables

Clean Price

Clean Price of a bond refers to the price an investor pays to buy the bond without considering any accrued interest.

Symbol: P_clean

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Clean Price

Dirty Price

Dirty Price of a bond refers to its full price, which includes both the clean price and the accrued interest since the last coupon payment.

Symbol: P_dirty

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Dirty Price

Accrued Interest

Accrued Interest is the interest that has accumulated on a bond since the last coupon payment.

Symbol: AI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Accrued Interest

Other formulas in Fixed Income Securities category

Go Conversion Ratio

CR = \frac{P vm}{CP equity}

Go Conversion Value

CV = P \cdot CR

Go Conversion Premium

CP = CV - MP CB

Go Floating Interest Rate

FIR = R ref + FS

How to Evaluate Clean Price?

Clean Price evaluator uses Clean Price = Dirty Price-Accrued Interest to evaluate the Clean Price, The Clean Price of a bond is the price at which the bond is traded in the market, excluding any accrued interest since the last coupon payment. Clean Price is denoted by P_clean symbol.

How to evaluate Clean Price using this online evaluator? To use this online evaluator for Clean Price, enter Dirty Price (P_dirty) & Accrued Interest (AI) and hit the calculate button.

FAQs on Clean Price

What is the formula to find Clean Price?

The formula of Clean Price is expressed as Clean Price = Dirty Price-Accrued Interest. Here is an example- 57.5 = 63-5.5.

How to calculate Clean Price?

With Dirty Price (P_dirty) & Accrued Interest (AI) we can find Clean Price using the formula - Clean Price = Dirty Price-Accrued Interest.

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Clean Price Formula

Clean Price Example

Clean Price Solution

Clean Price Formula Elements

Other formulas in Fixed Income Securities category

How to Evaluate Clean Price?

FAQs on Clean Price

Variable Name