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Time Value of Money

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

The concept that money you have now is more valuable than the same sum in the future.

More terms

Custodian bank

Learn what a custodian bank is.
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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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Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt
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Over-The-Counter (OTC)

A security that is sold outside of an exchange.
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Yield to maturity (YTM)

What is yield to maturity and why is it useful?
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Spot Rate

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

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

The amount of money a user has stored in a financial repository.
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LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.
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