A bond with interest and no maturity date, generally issued by a highly solvent nation. Since it has no maturity date and the issuer has no obligation to repay the invested amount, the buyer only receives interest at the agreed-upon frequency. Thus, if the investor wants to recover all the invested capital, they must sell the bond on the secondary markets, an operation whose profit depends on the state of interest rates at that time and their relationship to those of their bond.
« Back to Glossary IndexPerpetual bond
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