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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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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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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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United States Dollar (USD)

The famous greenback our friends in the US use as currency.
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Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.
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Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.
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Running yield

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

Profit on an investment, expressed as a percentage of the investment.
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Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.
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Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..
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