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Finance & Banking vocabulary · Treasury & Markets

Clean price

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, clean price means: A bond's quoted price excluding interest accrued since the previous coupon date.

In Turkish: temiz fiyat

How it is used

Use when comparing bond quotations; the cash settlement amount can also include accrued interest.

Example sentences

  1. The dealer quoted a clean price of 98 for the bond.

    The quotation leaves accrued coupon interest outside the price.

  2. The clean price stayed unchanged while accrued interest increased each day.

    Interest accrual can change the cash amount without changing the quotation.

Common collocations

  • bond clean price
  • quote a clean price
  • bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.
  • accrueTo build up gradually over time, as interest does on a loan or deposit; in accounting, to record income or costs when they are earned or incurred, not when cash moves.

More terms: Treasury & Markets

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This page explains English vocabulary for learners. It is not financial advice.