The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.
More terms
Retail Prices Index (RPI)
An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.
A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.