Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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What is a clean and dirty price of a bond?

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SOLUTION:-

The clean price of a bond refers to the price which does not includes accrued interest. Accrued interest is the interest which has been incurred or earned but not collected yet.

Clean price=Dirty Price - Accrued Interest

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