Okay, I keep seeing clean price mentioned with bonds but I’m not sure what it actually means. I thought bonds just had a price, what’s the clean part?
clean price is just the price without the accrued interest.
So, when they show a price, is that the clean price or the dirty one?
It’s always the clean price listed on most platforms, meaning it excludes the interest that’s already accumulated since the last coupon.
Exactly, clean price is the base price of the bond. When you buy a bond, you also pay the seller for the interest they’ve earned since the last coupon, which is why you’ll often see a dirty price that includes this accrued interest.
Okay, so if I buy a bond today, I pay extra for the interest the seller has earned since their last payout?
Yes, and you’ll get that extra interest back when the coupon is paid. So, you’re not losing it, just paying for it upfront.
That explains it. Was a bit confused about why the bond price wasn’t just a simple number.
Yeah, first time it was super confusing. I thought I was being charged extra 
It’s actually a good thing, because you’re essentially getting that interest payment when the coupon is paid out. No hidden charges, just timing.
Got it, thanks! I was overthinking it.
No worries, happens to everyone first time!