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.

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SPAC

Find our what a SPAc or special purpose acquisition company is.
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Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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Professional Client

An investor that is able to meet several regulatory criteria.
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Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.
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Compound interest

Understand what compound interest means and how it's calculated
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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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Spot Rate

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

What's the maturity value of a bond?
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Custodian bank

Learn what a custodian bank is.
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