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
A zero coupon bond is a bond that does not make interest payments.
This type of bond is issued at a discount to its maturity value and is redeemed at the maturity value, generating a return for the investor.
UK Treasury bills are an example of a zero coupon bond.
Zero coupon bonds can be issued by governments, municipalities, and companies.
