perpetual bond

(redirected from war loans)

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.
Dunblane and Lecropt War Savings Association's 810 members collected in 1917 PS12,320 of which PS5000 went in war loans and PS7320 was invested in 9420 war savings certificates.
The fund's balance was just over 5000 [pounds sterling], invested in New Zealand War Loans, which yielded an annual income of 225 [pounds sterling].
Although war loans tend to make the resources for private capital accumulation more scarce, Pigou notes that an excess of fiduciary inflation or of indirect taxes could be far more damaging to the economy by deteriorating the living standard of poor families and, therefore, putting them at greater risk of reduced productive capacity in the long run.
Russia, Italy, Serbia, and Belgium by making large war loans.
Therefore, the German propaganda effort lost battle after battle, whether it was about the decision not to ban the export of arms and munitions, the lifting of the ban on raising war loans in New York, or the eventual decision allowing British customers to buy much-needed supplies on credit.
In 1918, he was created a Knight Bachelor in recognition of the invaluable services he rendered to recruiting, raising war loans, and helping the fighting forces.
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.
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.