Home >  Term: perpetual annuity
perpetual annuity

Government bond that need never be redeemed (but may be, at the discretion of the government); only the payment of interest is guaranteed. Issued most commonly in France and the United Kingdom, where such bonds are known as consols (short for consolidated annuities). For some years large companies have also issued bonds and notes without fixed maturities (perpetual floating rate notes).

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