What is 'maturity date'? Definition & meaning

More terms

Clean price

The quoted price of a gilt, which excludes accrued interest

Dirty price

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

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.

Diversification

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

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

Year to Date (YTD)

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

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.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

Maturity date