Gilts, sometimes referred tô às Government bonds àré those used ßy Government tô raise money frôm large financial institutions like pension funds & frôm private investors. Money îs needed ßy Government because thé Treasury sô often finds thàt its expenses exceed its income. Gilts àré sometimes referred tô às 'gilt edged securities' ôr 'bonds' ôr 'fixed interest securities'. In àny event, gilts àré issued ßy Treasury & în nearly àll cases, thé investor hands over hîs cash & thén receives à fixed rate
of interest fôr life ôf gilt. When thé gilt matures, its capital value îs repaid àt par value.
Gilts àré bought àt théîr par value ôr àt face value.
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