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Conventional gilts

Conventional gilt

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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Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
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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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Yield to maturity (YTM)

What is yield to maturity and why is it useful?
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Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.
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Securities

Bonds and stocks.
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Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.
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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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Volatility

A measure of how much the prices of an asset or index vary over time.
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Accounting standards

The rules a company follows when preparing financial statements.
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