perpetual bond

(redirected from war loan)

Perpetual bond

Nonredeemable bond with no maturity date that pays regular interest rates indefinitely.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

perpetual bond

See consol.
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.
References in classic literature ?
It was mainly owing to his efforts that the war loan was such a success.
Spargur, chairman of the local motion picture exhibitors campaign for the Fifth War Loan Drive and manager of the Grand Theater.
1917: A patriotic appeal was launched for the nation to subscribe to the new War Loan, to finance the staggering cost of the conflict (PS5.7 million a day).
During a public presentation, he received a PS50 War Loan certificate, gold watch and a number of sovereigns.
* Perpetual debt: Within days of our declaration of war, Congress passed the War Loan Act, extending $1 billion in credit to the Allies ($200 million of which Britain immediately used to pay off loans to J.P.
"The Economics of the War Loan." The Economic Journal 27 (105): 16-25.
The aid provided by the war loan campaigns cannot be overstated.
Schiff even issued half of Japan's first war loan during the Russo-Japanese War.
The Treasury will redeem the outstanding GBP1.9bn of debt from 3.5% War Loan on 9 March 2015, which was issued in 1932 as part of a nationwide conversion campaign which was led by then Chancellor, Neville Chamberlain, in an effort to reduce the costs of servicing the national debt.
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.
And, should the Japanese government issue 'reconstruction bonds' - the equivalent of the UK's War Loan - savings may be diverted patriotically to the needs of the nation and not to commercial needs.