Chapter 5

Question 1

What are Gilts?

Answer 1

Government bonds. So-called as they used to have gilt edges.

Question 2

What are the lengths of short, medium and long term investments?

Answer 2

SHORT - 5 yrs or less
MEDIUM - 5 - 15 yrs
LONG - 15+ yrs

Question 3

How often is the interest payable on a bond?

Answer 3

Usually twice a year. E.g. a 4% Treasury Gilt 2022 pays 4% interest twice a year on dates specified at time of issue.