Can anyone explain how perpetual bonds work?
how do you determine the price of a perpetual bond? what return do they give, etc, any other interesting info is appreciated.
Bond best answer:
Answer by Ted
With a normal bond, you give money to someone, like the British government, and they promise to pay you interest for a certain period of time and then give you your money back.
With a perpetual bond, you give money to someone, like the British government, and they promise to pay you interest forever, but never give you your money back.
All bonds are prices the same way: the present value of a string of future payments. You can do this yourself with an Excel spreadsheet. It has a PV function built in. For a perpetual bond, put in something long like 99 years and a final lump sum payment of zero.
Bond
Bond Street Underground Station - escalators - Central line to Jubilee line
Image by ell brown
After visiting the Museum of London, and checking out St Paul's Cathedral, it was time to make our way over to Victoria, to see the amazing show that was Wicked.
We left St Paul's on the Central line for Bond Street. Then got the Jubilee line to Westminster (the Victoria line was closed for engineering works). Then the busy District line to Victoria.
At Bond Street Station - heading from the Central line to the Jubilee line.
Orignal From: Can anyone explain how perpetual bonds work? and Bond Street Underground Station - escalators - Central line to Jubilee line
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