In calculating the dirty price of the fixed income futures, there is something that I don’t get in the equation;
Equation (7)
F0(T)=QF0(T)CF(T)
=FV0,T[S0−PVCI0,T]=FV0,T[B0(T+Y)+AI0−PVCI0,T]
Is the only difference between AI0 and PVCI0,T is that AI0 is the accrued interest/coupons that have not been paid yet since last coupon date till the end of the existing coupon period lets say there are 60 days remaining till the next coupon which is made every 180 days.
As for PVCI0,T it is the present value of all remaining coupons over the life of the futures contract.
Is my interpretation correct??