consol(redirected from bank annuity)
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A government bond with no maturity . Popular in Great Britain. The formula for valuing these bonds is simple. The consol payment divided by yield to maturity is the price of the bond.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A debt instrument having no scheduled return of principal and therefore perpetual interest payments and no maturity. Consols fluctuate widely in price with changes in long-term interest rates. They have never been popular in the United States. Also called annuity bond, perpetual bond. See also perpetuity.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
consola FINANCIAL SECURITY issued by the government as a means of raising money. Consols are issued at a fixed price and bear a nominal fixed INTEREST RATE. Unlike other securities issued by the government such as TREASURY BILLS and BONDS, consols are irredeemable, i.e. they do not carry a specified redemption date. However, consols can be bought and sold on the STOCK MARKET at variable prices reflecting the forces of supply and demand for them.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson