This BlackRock page says that a bond ETF's NAV will fall by an amount equal to the dividend distribution when a dividend is paid out.
I assume that means that the bond ETF's NAV rises as interest is accrued daily (the BlackRock page also says that interest accrues daily).
How then do we incorporate this accrual when we calculate a NAV for the ETF? As in how does that affect the ETF price in the month before the dividend is paid and how do investors make assumptions about this? Does the ETF price already incorporate a "dirty price" that includes interest accrual?
Sources/useful resources would be extra appreciated!