If a compiler's work is essentially translating source code into machine level code, can there be any glitch in a compiler, i.e. a faulty "translation?" 

The same goes for an interpreter: can it fail to output the required content sometimes? 

I have not heard of any bugs in compilers/interpreters, but do they exist?

In layman's words:

All programs can have bugs.

Compilers are programs.

Ergo, compilers can have bugs.
