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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Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.
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Compound interest

Understand what compound interest means and how it's calculated
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Base rate

What's the base rate?
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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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Annualised Rate of Return

The average annual return an investor sees over a set period of time.
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Xetra

A trading venue operated by the Frankfurt Stock Exchange.
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Diversification

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

A summary of a company's finances, including its assets, liabilities and shareholder equity.
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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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