QUICK DEFINITION
Clean Price is a bond price quoted without accrued interest.
WHY IT MATTERS
Why Clean Price matters in bond markets
Clean pricing makes bonds easier to compare across coupon-payment dates, while settlement usually occurs at the dirty price.
MARKET CONTEXT
How to think about it
Bond investors use clean price as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Clean Price important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Clean pricing makes bonds easier to compare across coupon-payment dates, while settlement usually occurs at the dirty price.