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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

Clean price

The quoted price of a gilt, which excludes accrued interest

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Geometric Mean Return

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

Zero coupon bonds

What is a zero coupon bond?

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

Zero-Sum Game

A situation in which one person's gain is another's loss.

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

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