What is a 'Clean Price'
Clean price is the price of a coupon bond not including any accrued interest. A clean price is the discounted future cash flows, not including any interest accruing on the next coupon payment date, and immediately following each coupon payment, the clean price will equal the dirty price. The clean price is calculated by subtracting the accrued interest from the dirty price.
Clean Price = Dirty Price  Accrued Interest
BREAKING DOWN 'Clean Price'
The country in which the couponpaying bond is traded will influence how the bond is quoted. In the United States, it is the market convention to quote a bond in terms of its clean price; in other markets, bonds are more commonly quoted in terms of their dirty price.
Bonds are quoted as either a percentage of their par value, or face value, or in dollar terms. For example, if a bond is quoted at 98, this indicates that it is 98% of the bond's par value. Therefore, if the bond's par value is $1,000, the bond price is $980. This is the clean price of the bond since it does not reflect the accrued interest on the bond. Although bonds are typically quoted in terms of the clean price, investors pay the dirty price unless the bond is purchased on the coupon payment date.
Accrued Interest Calculation
On a bond's interest payment date, the accrued interest is reset to zero. If the next coupon payment is not due or the bond has not expired, the accrued interest is added to sale price of the bond. For example, assume a $1,000 par value bond has a coupon rate of 5%, which is paid quarterly, and 30 days have passed since the last coupon date. Therefore, the accrued interest is calculated to be 0.42, or (5% x (30/90) x (1/4)). 90 days represents the average number of days in a quarter.
Clean Price Calculation
For example, assume a corporate bond has a par value of $1,000 and has a coupon rate of 6%, which is paid on a semiannual basis on Jan. 1 and July 1. The bond is sold for a dirty price of 93, or 93% of par value, on March 2. To calculate the clean price, the number of days between the coupon dates is calculated to be 60 days, excluding the day that the bond was sold. Therefore, the accrued interest is calculated to be 1.00, or (6% x (1/2) x (60/180)). Therefore, the clean price of the bond is calculated to be 92.00, or 93  1.00, which is equivalent to $920.

Flat Bond
A flat bond is a debt instrument that is sold or traded without ... 
And Interest
A slang phrase used when quoting the price of a fixedincome ... 
Coupon Rate
Coupon rate is the yield paid by a fixed income security, which ... 
Ex Coupon
Excoupon is a bond or preferred stock that does not include ... 
Coupon Bond
A coupon bond is a debt obligation with coupons attached that ... 
Bond
A bond is a fixed income investment in which an investor loans ...

Financial Advisor
Present Value Of Different Bond Types Using Excel
To determine the value of a bond today  for a fixed principal (par value) to be repaid in the future  we can use an Excel spreadsheet. 
Investing
Understanding Bond Prices and Yields
Understanding this relationship can help an investor in any market. 
Investing
What's Accrued Interest?
Accrued interest has two meanings. In accounting, it is interest that has been earned, but the time for payment has not yet occurred. 
Investing
Comparing Yield To Maturity And The Coupon Rate
Investors base investing decisions and strategies on yield to maturity more so than coupon rates. 
Investing
Corporate Bond Basics: Learn to Invest
Understand the basics of corporate bonds to increase your chances of positive returns.

What does 100plus accrued interest mean?
Find out what it means when a bond is quoted at "100plus accrued interest," and why it might be a more accurate reflection ... Read Answer >> 
How do debit spreads impact the trading of options?
Find out what it means when a bond has a coupon rate of zero and how a bond's coupon rate and par value affect its selling ... Read Answer >> 
What is the most common solvency ratios used in fundamental analysis?
Learn about the difference between a bond's coupon rate and its yield rate, how the coupon rate influences market price and ... Read Answer >> 
How does a bond's coupon interest rate affect its price?
Find out why the difference between the coupon interest rate on a bond and prevailing market interest rates has a large impact ... Read Answer >> 
Will the price of a premium bond be higher or lower than its par value?
Find out why the selling price of a premium bond is always higher than its par value, including how changing interest rates ... Read Answer >>