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.
It was the USA which was the big creditor nation, having issued huge war loans to the World War I Allies in Europe.
5% and 4% war loans will have been repaid - adding to a pledge in October that PS218million of bonds called the 4% Consol would be settled by February.
In 1945 Britain was bankrupt, owing countless billions of pounds to America in war loans.
Wars and panics on the stock exchange, / machine gun fire and arson, / bankruptcies, war loans, / starvation, lice, cholera and typhus: good growing weather for the House of Morgan.
Funds to finance these huge war loans was borrowed from China and Japan, putting America ever deeper in thrall to the Asian powers, and undermining its finances.
War loans to Britain and France meant by 1918 the United States had become a financial powerhouse, but policymakers in Washington lacked 'the sustained will to power' and retreated into political isolationism.
In France, the challenge of paying off war loans provoked years of political instability despite a tradition of fiscal conservatism.
Post World War II, people muttered that America owned us' indeed, we're still paying interest on war loans.
He also pulled off the extraordinary political feat of cajoling holders of War Loans to vote away half their interest income.
Imperial Chemical Industries secretly bought Israeli war loans and kept the purchases off its books to avoid jeopardising its efforts to break into Arab markets.