What is the 'time value of money'? Definition & meaning

More terms

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.

Dirty price

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

Zero coupon bonds

What is a zero coupon bond?

United States Dollar (USD)

The famous greenback our friends in the US use as currency.

Total Return

This is the measurement of a fund’s performance in a specific period.

Base rate

What's the base rate?

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

Income statement

A summary of a company's income and expenses over a set period of time.

Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

Time Value of Money