perpetual bond

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Perpetual bond

Nonredeemable bond with no maturity date that pays regular interest rates indefinitely.

Perpetual Bond

A bond in which the issuer does not repay the principal. Rather, a perpetual bond pays the bondholder a fixed coupon as long as he/she holds it. Prices for perpetual bonds vary widely according to long-term interest rates. When interest rates rise, perpetual bonds fall and vice versa. Perpetual bonds are most common in the United Kingdom, where they were used originally to pay for the military.

perpetual bond

See consol.
References in classic literature ?
It was mainly owing to his efforts that the war loan was such a success.
Schiff even issued half of Japan's first war loan during the Russo-Japanese War.
5% War Loan was the most widely held of any UK Government bond with more than 120,000 holders, or 60% of all holdings of government gilts.
5% War |Loan was issued in 1932 by the thenchancellor Neville Chamberlain in exchange for the 5% War Loan 1929-47, which was issued in 1917 as part of the effort to raise money to pay for the First World War.
THE Royal Liver Friendly Society has decided to take up PS200,000 in the new War Loan, and the health section of the society is also going to make an investment, the amount of which has not yet been decided.
The government raised the vast sums needed to finance the war through the sale of War Loan Stock and various savings certificates.
With the exception of War Loan, all conventional bonds, including now the 13/4% 2022, are trading above par.
1917: A patriotic appeal was launched for the nation to subscribe to the new War Loan, to finance the staggering cost of the conflict (pounds 5.
Birmingham bred the only Chancellor who defaulted on a British Government debt - or rather he cut the interest on War Loan.
Leffingwell, Assistant Secretary of the Treasury and head of the War Loan Organization, who was charged by Pres.
20) A bank typically paid for its own and its customers' purchases of Treasury securities by crediting the War Loan Deposit Account that the Treasury maintained at the bank.
1861 Civil war breaks out between north and south, and the directors of M&T vote on September 24 to subscribe $50,000 to a Union war loan fund.