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Fixed Income Instruments

Clean Price

Accrued Interest is the interest that has accumulated on a bond since the last interest payment date. A bond's Clean Price refers to its value without including the accrued interest. This interest is the additional amount that has accumulated on the bond since its last interest payment. It is essential to understand the concept of Clean Price in order to accurately assess the true value of a bond. This calculation plays a crucial role in the financial analysis of bonds and is a fundamental concept in the field of finance. Let's delve deeper into the intricacies of Clean Price and its significance in bond valuation.
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