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Accrued interest

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

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Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
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Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.
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Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).
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Stock Market

A place where shares of publicly listed companies are traded.
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Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.
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Clean price

The quoted price of a gilt, which excludes accrued interest
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Custodian bank

Learn what a custodian bank is.
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Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.
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Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.
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