## Clean Price Solution

STEP 0: Pre-Calculation Summary
Formula Used
Clean Price = Dirty Price-Accrued Interest
Pclean = Pdirty-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
Pclean = Pdirty-AI --> 63-5.5
Evaluating ... ...
Pclean = 57.5
STEP 3: Convert Result to Output's Unit
57.5 --> No Conversion Required
57.5 <-- Clean Price
(Calculation completed in 00.004 seconds)
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## Credits

Created by Keerthika Bathula
Keerthika Bathula has created this Calculator and 100+ more calculators!
Verified by Aashna
IGNOU (IGNOU), India
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## <Fixed Income Securities Calculators

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Conversion Ratio
​ Go Conversion Ratio = Par Value at Maturity/Conversion Price of Equity
Conversion Value
​ Go Conversion Value = Market Price per Share*Conversion Ratio
Floating Interest Rate
​ Go Floating Interest Rate = Reference Rate+Fixed Spread

## Clean Price Formula

Clean Price = Dirty Price-Accrued Interest
Pclean = Pdirty-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 Pclean symbol.

How to calculate Clean Price using this online calculator? To use this online calculator for Clean Price, enter Dirty Price (Pdirty) & 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 Pclean = Pdirty-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 (Pdirty) & 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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