Clean Price Calculator

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✖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.ⓘ Dirty Price [P_dirty]			+10% -10%
✖Accrued Interest is the interest that has accumulated on a bond since the last coupon payment.ⓘ Accrued Interest [AI]			+10% -10%

✖Clean Price of a bond refers to the price an investor pays to buy the bond without considering any accrued interest.ⓘ Clean Price [P_clean]

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Clean Price Solution

STEP 0: Pre-Calculation Summary

Formula Used

Clean Price = Dirty Price-Accrued Interest
P_clean = P_dirty-AI
This formula uses 3 Variables

Variables Used

Clean Price - Clean Price of a bond refers to the price an investor pays to buy the bond without considering any accrued interest.
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.
Accrued Interest - Accrued Interest is the interest that has accumulated on a bond since the last coupon payment.

STEP 1: Convert Input(s) to Base Unit

Dirty Price: 63 --> No Conversion Required
Accrued Interest: 5.5 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

P_clean = P_dirty-AI --> 63-5.5

Evaluating ... ...

P_clean = 57.5

STEP 3: Convert Result to Output's Unit

57.5 --> No Conversion Required

FINAL ANSWER

57.5 <-- Clean Price

(Calculation completed in 00.017 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 100+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 50+ more calculators!

< Fixed Income Securities Calculators

Conversion Premium

LaTeX Go Conversion Premium = Conversion Value-Market Price of Convertible Bond

Conversion Ratio

LaTeX Go Conversion Ratio = Par Value at Maturity/Conversion Price of Equity

Conversion Value

LaTeX Go Conversion Value = Market Price per Share*Conversion Ratio

Floating Interest Rate

LaTeX Go Floating Interest Rate = Reference Rate+Fixed Spread

Clean Price Formula

LaTeX Go

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

What is Clean Price ?

The clean price of a bond represents its market value excluding any accrued interest. It is the price at which the bond is traded between investors, reflecting only the basic value of the bond itself without factoring in the interest that has accumulated since the last coupon payment. This distinction is important because accrued interest is typically paid to the bondholder in addition to the clean price when the bond is purchased, making the dirty price the total amount a buyer actually pays. The clean price is crucial for investors as it provides a clear indication of the bond's intrinsic value separate from the interest that has accrued over time.

How to Calculate Clean Price?

Clean Price calculator uses Clean Price = Dirty Price-Accrued Interest to calculate 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 calculate Clean Price using this online calculator? To use this online calculator for Clean Price, enter Dirty Price (P_dirty) & Accrued Interest (AI) and hit the calculate button. Here is how the Clean Price calculation can be explained with given input values -> 57.5 = 63-5.5.

FAQ

What is 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 and is represented as P_clean = P_dirty-AI or Clean Price = Dirty Price-Accrued Interest. 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 & Accrued Interest is the interest that has accumulated on a bond since the last coupon payment.

How to calculate 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 is calculated using Clean Price = Dirty Price-Accrued Interest. To calculate Clean Price, you need Dirty Price (P_dirty) & Accrued Interest (AI). With our tool, you need to enter the respective value for Dirty Price & Accrued Interest and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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