Fixed Income
Perpetual Bond
Definition
What is Perpetual Bond?
A bond with no fixed maturity dateThe date on which a debt instrument's remaining principal becomes due., although it may contain call provisions.
Example in practice
How This Looks in Practice
The perpetual bond pays coupons indefinitely unless the issuer calls it.
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Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.