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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.

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Clean price

The quoted price of a gilt, which excludes accrued interest
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Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.
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Total Return

This is the measurement of a fund’s performance in a specific period.
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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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Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.
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Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
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Maturity value

What's the maturity value of a bond?
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Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.
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Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
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