MATLAB: What is the meaning of FLOATBYZERO’s output argument PriceNoAI, in Financial Instruments Toolbox 1.0 (R2012b)

Question

In the documentation of FLOATBYZERO the definition of the output argument PriceNoAI is the following:

" PriceNoAI:

NINST-by-NUMCURVES matrix of dirty bond price (clean + accrued interest). Each column arises from one of the zero curves. "

The argument is PriceNoAI, which I translate as price with no accrued interest, but its definition is 'clean + accrued interest'.

Which one is the correct one?

Answer 1

The documentation's description of "PriceNoAI" is correct. It is indeed the dirty bond price (clean price + accrued interest). The name "PriceNoAI" may be misleading, but it was originated from "removing the negative accrued interest" which is the same as adding the accrued interest.

Therefore,

- Price is the clean price and,

- PriceNoAI is the dirty price.