Final answer:
The price you actually pay to purchase a bond will generally exceed the clean price due to accrued interest.
Step-by-step explanation:
The statement True. The price you actually pay to purchase a bond will generally exceed the clean price. When purchasing a bond, you typically pay the clean price plus accrued interest. The clean price represents the bond's value without the inclusion of any interest, while the accrued interest represents the interest that has accumulated since the last interest payment.
For example, if a bond has a clean price of $1,000 and the accrued interest is $20, the price you would pay to purchase the bond would be $1,020.
This is because the bond issuer compensates the bondholder for the interest that has already accumulated since the last interest payment.