Multiple choice question.
The clean price includes interest accrued since the last coupon payment, while the dirty price excludes accrued interest.
The clean price refers to the bond's book value while the dirty price refers to its market value.
The clean price excludes interest accrued since the last coupon payment, while the dirty price includes accrued interest.
The clean price refers to the market price, while the dirty price refers to analysts' forecasts.
1 answer
The correct answer is:
The clean price excludes interest accrued since the last coupon payment, while the dirty price includes accrued interest.
In summary, the clean price is the price of a bond without including any accrued interest, while the dirty price does include accrued interest, which is what a buyer actually pays for the bond.
