Dictionary
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Coupon

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.

More terms

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.
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Yield to maturity (YTM)

What is yield to maturity and why is it useful?
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Investment Trust

A company that pools money together from multiple investors and then invests it.
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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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Costs and Charges

The money you pay when investing.
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Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.
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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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Rate of Return

Profit on an investment, expressed as a percentage of the investment.
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Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.
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