Gilt interest payments are typically made in two equal instalments each year. What is the interval between payments?

• A. Six months
• B. Three months
• C. Nine months
• D. Twelve months

Answer: (A)

Gilt coupons are paid semi-annually, meaning twice a year with equal cash flows spaced six months apart. The exact payment dates are fixed for each gilt issue, but the interval between payments is consistently six months, not quarterly or annually. So the correct interval is six months.