Clean and Dirty Prices
Interactive

Clean and Dirty Prices

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

The present value (PV) of a fixed-rate bond is the discounted value of the future cash flows. Yet the market price can differ to this value. Here, we explain what is meant by a clean and dirty price, the use of clean prices. We see how accrued interest is calculated on different days basis and the use of bond calculators in these calculations.

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