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Perpetual bond

An issue with no maturity date: the coupon runs indefinitely, and the only way to get the principal back is to sell the bond to somebody else.

How to read the number

The price rests almost entirely on the coupon and on trust in the issuer. There is no date at which the price is obliged to converge back to par.

When the metric lies

Also known as: perpetual, perp

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