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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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An investment strategy in which money is put into a variety assets.
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Bond

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Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.
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Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
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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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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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LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.
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Xetra

A trading venue operated by the Frankfurt Stock Exchange.
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Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.
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