The clean price of a bond is the quoted market price of the bond excluding any accrued interest that has accumulated since the last coupon payment date. Clean prices are the standard price convention used in bond market quotations — on Bloomberg, exchange platforms, and dealer screens — because they strip out the accrued interest component that changes daily, allowing investors to compare the market value of bonds with different coupon dates and payment schedules on a consistent basis. The clean price reflects the present value of the bond's remaining cash flows based on the current market yield, independent of the timing of the last coupon payment. The actual amount paid in a transaction — the dirty price — is the clean price plus accrued interest. For fixed income investors on Ventura Securities trading government securities (G-Secs), state development loans (SDLs), corporate bonds, or NCDs in the secondary market, understanding that bond quotes reflect clean prices while actual settlement is at dirty prices prevents misunderstandings in transaction pricing and portfolio accounting.
