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Interest Rate

Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

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Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
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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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Clean price

The quoted price of a gilt, which excludes accrued interest
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Yield curve

A graphical representation of interest rates over time
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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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DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.
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Rate of Return

Profit on an investment, expressed as a percentage of the investment.
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Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.
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Xetra

A trading venue operated by the Frankfurt Stock Exchange.
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