Dividend: Also known as the coupon, this is the fixed annual interest rate paid to gilt holders, expressed as a percentage of the gilt’s face value. The rate is quoted annually, but paid semi-annually.
Running yield: The annual dividend divided by the current market price of the bond.
Yield-to-maturity (YTM): The actual annual return an investor receives if the gilt is purchased at the current market price and held until maturity. As gilt prices rise, yields fall, and vice versa.