**1. Yes—for each £100 of nominal gilt you hold, the maturity payment is £100 plus the final £1.875 coupon**, before any applicable tax. You also receive any intervening half-yearly coupons while holding it. The [original prospectus](https://www.dmo.gov.uk/media/vzflwdow/prosp300609a.pdf) confirms repayment at par and the March/September payment dates.

However, **£100.84 would usually be the quoted “clean” price**. HL adds accrued interest to calculate what you actually pay, even before dealing charges. That interest compensates the seller for their share of the current coupon period. [HL’s pricing explanation](https://www.hl.co.uk/shares/corporate-bonds-gilts/what-you-need-to-know-about-buying-government-bonds-gilts)

For example, buying exactly halfway through a normal coupon period would mean approximately:

- Purchase cost: £100.84 + £0.9375 accrued interest = **£101.7775**, excluding charges.
- Next coupon received: **£1.875**.

Coupon entitlement depends on the settlement date and the gilt’s ex-dividend rules. [DMO payment rules](https://dmo.gov.uk/responsibilities/gilt-market/about-gilts/)

The 3.75% coupon is calculated on **nominal value**. Your investment return also reflects the purchase price, accrued interest and the £0.84 premium lost when redemption pays £100.

**2. A normal purchase through HL is a secondary-market purchase.** “Competitive” and “non-competitive” describe bids at the government’s issuance auction:

- **Competitive:** the bidder specifies a price; successful bidders in this conventional gilt auction pay their bid price.
- **Non-competitive:** the bidder accepts the weighted average price of successful competitive bids. [DMO definitions](https://dmo.gov.uk/help/glossary/)

The £104.50 quoted in the prospectus was the **upfront application payment for the auction on 7 July 2009**. It does not determine the price of your later HL purchase. These bid types also do not change the gilt’s coupon or redemption value. [Auction prospectus](https://www.dmo.gov.uk/media/vzflwdow/prosp300609a.pdf)

One date clarification: this gilt matured in September 2019, so your quoted price should be treated as a historical example.