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Wow! Now that factor of 365/90 makes all the sense.. was confused as to how every text came up with that 365/90.. why didnt they just do it the way David explained in statement 1 :P (to save us from the confusion) Thanks David! :D

Thanks David. You have made things very clear! Btw I cant open the link http://forum.bionicturtle.com/threads/l1-t3-170-clean-versus-dirty-bond-prices.4561/ It says you have to login or you dont have the necessary permission! Anyways, thank you so much for your time and effort :D

Wow had some misconceptions! After reading your post I draw the following conclusions 1. The spot prices of forwards confracts are full/dirty/cash price.(I misunderstood them to be clean prices)! 2. To give the prices of future bonds in clean prices is a convention, so one needs to add the...

Thanks for your reply! Will read through what you have said and come back to you :D David and Shakti just want to thank you guys for the quick responses you'll give. You'll are doing a wonderfull job! Thanks :D

Hi, David We use the dirty price when calculating the Theoretical futures price of a bond and later in the final step subtract the accrued interest to get the quoted price. 3 questions : 1.Why doesnt this dirty price usage and acc int subtraction come when we calculate forward prices for...

They should mention the compunding frequency (the only confusion)! Rest is doable be it from spot prices, discount factors or bond rates :D