KuramaYoko is absolutely correct! I verify it, it works!

You can also right click map frame, choose 'properties'

click Data Frame tab,

under clip options, choose 'clip to shape',

click specify shape button

choose outline of features

in the layer drop down, choose your clip polygon.

then click apply, ok,

You can also:

• right click map frame, choose 'properties'
• click Data Frame tab,
• under clip options, choose 'clip to shape',
• click specify shape button
• choose outline of features
• in the layer drop down, choose your clip polygon.
• then click Apply, then OK