964:
133:
a piece", as of 2004 the yearly interest payment to the bondholder is set at €11.35. According to its original terms, the bond would pay 5% interest in perpetuity, although the interest rate was reduced to 3.5% and then 2.5% during the 18th
114:
travelled in person to the
Netherlands to collect the interest due. Interest continues to accumulate on this bond, and was most recently paid in 2015 by the eventual successor of Lekdijk Bovendams (
204:
252:
230:
939:
110:. Yale bought the document for its history of finance archive at auction in 2003, at which time no interest had been paid on it since 1977. Yale Professor
435:
484:
119:
927:
933:
69:
Although similar to equity, perpetual bonds do not have attached votes and, therefore, provide no means of control over the issuer.
313:
1001:
540:
115:
863:
858:
147:
Most perpetual bonds issued in the present day are deeply subordinated bonds issued by banks. The bonds are counted as
174:
853:
729:
325:
512:
460:
669:
284:
488:
159:, but the first call date is never less than five years from the date of issue—a call protection period.
106:
are known to survive by 2023. Another of these bonds, issued in 1648, is currently in the possession of
994:
709:
76:
securities; therefore, paying coupons is mandatory whereas paying dividends on equity is discretionary.
533:
99:
378:
1020:
868:
350:
1025:
802:
704:
987:
848:
812:
649:
608:
138:
269:
95:
issued by a number of governments to finance war efforts in the first and second world wars.
526:
152:
8:
618:
49:
975:
694:
237:
215:
901:
827:
679:
601:
289:
111:
891:
762:
734:
674:
659:
124:
103:
37:
906:
896:
699:
689:
684:
613:
279:
142:
107:
971:
807:
792:
757:
744:
623:
591:
560:
148:
29:
409:
1014:
911:
886:
797:
782:
772:
724:
664:
654:
156:
45:
33:
822:
767:
714:
644:
570:
274:
73:
878:
817:
777:
752:
628:
596:
586:
549:
264:
98:
The oldest example of a perpetual bond was issued on 15 May 1624 by the
57:
53:
565:
832:
787:
294:
92:
414:
130:
86:
48:
on perpetual bonds forever, and they do not have to redeem the
518:
963:
89:
that were issued by the United States and the UK governments.
41:
102:
of
Lekdijk Bovendams. Only about five such bonds from the
118:). Originally issued with a principal of "1000 silver
940:
Securities
Industry and Financial Markets Association
410:"The centuries-old debt that's still paying interest"
314:
Types of Bonds: The
Valuation of Long-Term Securities
240:
218:
177:
436:"Yale's 367-year-old water bond still pays interest"
377:
Goetzmann, William N.; Rouwenhorst, K Geert (2023).
376:
461:"Some Perpetual Bonds Are More Eternal Than Others"
246:
224:
198:
1012:
254:is an expected yield for maximum term available.
513:"Perpetual debt in favour, but yields may fall"
168:Perpetual bonds are valued using the formula:
995:
534:
199:{\displaystyle {\text{Price}}={\frac {I}{y}}}
63:
348:
1002:
988:
928:Commercial Mortgage Securities Association
541:
527:
458:
36:, therefore allowing it to be treated as
934:International Capital Market Association
433:
116:Hoogheemraadschap De Stichtse Rijnlanden
232:is an annual coupon interest on a bond.
1013:
459:Choudhury, Indrajit Roy (2015-09-16).
522:
372:
370:
958:
952:Financial bond with no maturity date
864:Commercial mortgage-backed security
13:
970:This finance-related article is a
859:Collateralized mortgage obligation
367:
349:Wigglesworth, Robin (2023-08-09).
14:
1037:
506:
407:
151:and help the banks fulfill their
962:
351:"The world's oldest living bond"
548:
20:, also known colloquially as a
854:Collateralized debt obligation
730:Reverse convertible securities
477:
452:
427:
401:
342:
318:
307:
1:
434:Cummings, Mike (2015-09-22).
300:
974:. You can help Knowledge by
515:, LiveMint.com, July 7, 2007
7:
670:Contingent convertible bond
285:Perpetual subordinated debt
258:
80:
56:are, therefore, those of a
10:
1042:
957:
710:Inverse floating rate note
163:
155:. Most of these bonds are
72:Perpetual bonds are still
64:Perpetual bonds vs. equity
920:
877:
841:
743:
637:
579:
556:
869:Mortgage-backed security
638:Types of bonds by payout
580:Types of bonds by issuer
803:Option-adjusted spread
705:Inflation-indexed bond
379:"Infinity has a price"
330:Guinness World Records
248:
226:
200:
849:Asset-backed security
813:Weighted-average life
650:Auction rate security
249:
227:
201:
139:gilt-edged securities
842:Securitized products
383:Yale Alumni Magazine
326:"Oldest active bond"
238:
216:
175:
153:capital requirements
619:Infrastructure bond
695:Floating rate note
244:
222:
196:
983:
982:
949:
948:
902:Exchangeable bond
828:Yield to maturity
680:Exchangeable bond
602:Subordinated debt
290:Subordinated debt
247:{\displaystyle y}
225:{\displaystyle I}
194:
181:
112:Geert Rouwenhorst
100:Dutch water board
52:. Perpetual bond
1033:
1004:
997:
990:
966:
959:
892:Convertible bond
735:Zero-coupon bond
675:Convertible bond
660:Commercial paper
543:
536:
529:
520:
519:
500:
499:
497:
496:
487:. Archived from
485:"BOND VALUATION"
481:
475:
474:
472:
471:
456:
450:
449:
447:
446:
431:
425:
424:
423:
422:
405:
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365:
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250:
245:
231:
229:
228:
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205:
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197:
195:
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179:
128:
104:Dutch Golden Age
1041:
1040:
1036:
1035:
1034:
1032:
1031:
1030:
1021:Bonds (finance)
1011:
1010:
1009:
1008:
955:
953:
950:
945:
916:
907:Extendible bond
897:Embedded option
873:
837:
739:
700:High-yield debt
690:Fixed rate bond
685:Extendible bond
633:
614:Government bond
609:Distressed debt
575:
552:
547:
509:
504:
503:
494:
492:
483:
482:
478:
469:
467:
457:
453:
444:
442:
432:
428:
420:
418:
406:
402:
392:
390:
375:
368:
359:
357:
355:Financial Times
347:
343:
334:
332:
324:
323:
319:
312:
308:
303:
280:Government bond
270:Debt securities
261:
239:
236:
235:
217:
214:
213:
186:
178:
176:
173:
172:
166:
143:Bank of England
122:
120:Carolus gulders
108:Yale University
83:
66:
12:
11:
5:
1039:
1029:
1028:
1023:
1007:
1006:
999:
992:
984:
981:
980:
967:
951:
947:
946:
944:
943:
937:
931:
924:
922:
918:
917:
915:
914:
909:
904:
899:
894:
889:
883:
881:
875:
874:
872:
871:
866:
861:
856:
851:
845:
843:
839:
838:
836:
835:
830:
825:
820:
815:
810:
808:Risk-free bond
805:
800:
795:
793:Mortgage yield
790:
785:
780:
775:
770:
765:
760:
755:
749:
747:
745:Bond valuation
741:
740:
738:
737:
732:
727:
722:
720:Perpetual bond
717:
712:
707:
702:
697:
692:
687:
682:
677:
672:
667:
662:
657:
652:
647:
641:
639:
635:
634:
632:
631:
626:
624:Municipal bond
621:
616:
611:
606:
605:
604:
599:
592:Corporate bond
589:
583:
581:
577:
576:
574:
573:
568:
563:
557:
554:
553:
546:
545:
538:
531:
523:
517:
516:
508:
507:External links
505:
502:
501:
476:
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400:
366:
341:
317:
305:
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297:
292:
287:
282:
277:
272:
267:
260:
257:
256:
255:
243:
233:
221:
207:
206:
193:
190:
185:
165:
162:
161:
160:
149:Tier 1 capital
145:
141:issued by the
135:
96:
90:
82:
79:
78:
77:
70:
65:
62:
44:. Issuers pay
18:perpetual bond
9:
6:
4:
3:
2:
1038:
1027:
1026:Finance stubs
1024:
1022:
1019:
1018:
1016:
1005:
1000:
998:
993:
991:
986:
985:
979:
977:
973:
968:
965:
961:
960:
956:
941:
938:
935:
932:
929:
926:
925:
923:
919:
913:
912:Puttable bond
910:
908:
905:
903:
900:
898:
895:
893:
890:
888:
887:Callable bond
885:
884:
882:
880:
876:
870:
867:
865:
862:
860:
857:
855:
852:
850:
847:
846:
844:
840:
834:
831:
829:
826:
824:
821:
819:
816:
814:
811:
809:
806:
804:
801:
799:
798:Nominal yield
796:
794:
791:
789:
786:
784:
781:
779:
776:
774:
773:Current yield
771:
769:
768:Credit spread
766:
764:
761:
759:
756:
754:
751:
750:
748:
746:
742:
736:
733:
731:
728:
726:
725:Puttable bond
723:
721:
718:
716:
713:
711:
708:
706:
703:
701:
698:
696:
693:
691:
688:
686:
683:
681:
678:
676:
673:
671:
668:
666:
663:
661:
658:
656:
655:Callable bond
653:
651:
648:
646:
643:
642:
640:
636:
630:
627:
625:
622:
620:
617:
615:
612:
610:
607:
603:
600:
598:
595:
594:
593:
590:
588:
585:
584:
582:
578:
572:
569:
567:
564:
562:
559:
558:
555:
551:
544:
539:
537:
532:
530:
525:
524:
521:
514:
511:
510:
491:on 2015-04-21
490:
486:
480:
466:
462:
455:
441:
437:
430:
417:
416:
411:
404:
388:
384:
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373:
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211:
210:
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169:
158:
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150:
146:
144:
140:
137:Some undated
136:
132:
126:
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117:
113:
109:
105:
101:
97:
94:
91:
88:
85:
84:
75:
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68:
67:
61:
59:
55:
51:
47:
43:
39:
35:
34:maturity date
31:
27:
23:
19:
976:expanding it
969:
954:
921:Institutions
879:Bond options
823:Yield spread
719:
715:Lottery bond
645:Accrual bond
571:Fixed income
493:. Retrieved
489:the original
479:
468:. Retrieved
464:
454:
443:. Retrieved
439:
429:
419:, retrieved
413:
408:Scott, Tom,
403:
391:. Retrieved
386:
382:
358:. Retrieved
354:
344:
333:. Retrieved
329:
320:
309:
275:Fixed income
208:
167:
74:fixed-income
25:
21:
17:
15:
818:Yield curve
778:Dirty price
753:Clean price
629:Global bond
597:Senior debt
587:Agency bond
550:Bond market
465:Indrosphere
265:Bond market
123: [
1015:Categories
495:2010-10-03
470:2021-11-15
445:2021-11-15
421:2022-11-20
389:(4): 48–49
360:2023-09-30
335:2022-11-20
301:References
58:perpetuity
54:cash flows
758:Convexity
566:Debenture
93:War bonds
50:principal
40:, not as
22:perpetual
833:Z-spread
788:I-spread
783:Duration
440:YaleNews
393:11 March
295:War bond
259:See also
157:callable
134:century.
131:Stuivers
81:Examples
32:with no
942:(SIFMA)
415:YouTube
209:where:
164:Pricing
87:Consols
46:coupons
28:, is a
936:(ICMA)
930:(CMSA)
763:Coupon
665:Consol
129:of 20
38:equity
180:Price
127:]
972:stub
561:Bond
395:2023
42:debt
30:bond
26:perp
24:or
1017::
463:.
438:.
412:,
387:86
385:.
381:.
369:^
353:.
328:.
125:nl
60:.
16:A
1003:e
996:t
989:v
978:.
542:e
535:t
528:v
498:.
473:.
448:.
397:.
363:.
338:.
242:y
220:I
192:y
189:I
184:=
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.