InvestorQ : What are perpetual bonds?
Bhavik Nehru made post

What are perpetual bonds?

Niraj Mehta answered.
1 year ago

Perpetual bond or perpetuity is an investment in which interest payments are made forever, but principal is not repaid at all. As an example, a stock that pays a regular stream of constant dividends can also been thought of as a perpetuity. This is because the same cash flows are paid each year, and the stock has an infinite lifetime. Another example is a consol, which is a bond that makes interest payments forever but does not repay the principal. Companies like Reliance Industries had raised money through perpetual bonds in the past, although these are not too popular these days.