Consols (short for consolidated annuities^{[citation needed]}) are a form of British government bond (gilt), dating originally from the 18th century. Consols are considered one of the rare examples of an actual perpetuity, although they may be redeemed by the issuer. A government bond is a bond issued by a national government denominated in the countrys own currency. ... Gilts are bonds issued by the UK Government. ... A perpetuity is an annuity in which the periodic payments begin on a fixed date and continue indefinitely. ...

In 1752, the Chancellor of the Exchequer and Prime Minister Sir Henry Pelham converted all outstanding issues of redeemable government stock into one bond, Consolidated 3.5% Annuities, in order to reduce the coupon rate paid on the government debt. 1752 was a leap year starting on Saturday (see link for calendar). ... The Chancellor of the Exchequer is the title held by the British cabinet minister responsible for all financial matters. ... A prime minister is the most senior minister of a cabinet in the executive branch of government in a parliamentary system. ... The Right Honourable Henry Pelham (25 September 1694–6 March 1754) was a British Whig statesman, who served as Prime Minister of Great Britain from 27 August 1743 to his death about ten years later. ... See also Coupon for other meanings of the same word In finance, coupons are attached to bonds, either physically (as with old bonds) or electronically. ...

In 1757, the coupon rate on the stock was reduced to 3%, leaving the stock as Consolidated 3% Annuities. The coupon rate remained at 3% until 1888. In 1888, the Chancellor of the Exchequer, George Joachim Goschen, converted the existing Consolidated 3% Annuities, along with Reduced 3% Annuities (issued in 1752) and New 3% Annuities (1855), into a new bond, 2¾% Consolidated Stock under the National Debt (Conversion) Act 1888 (Goschen’s Conversion). As part of the terms of the Act, the coupon rate of the stock was reduced to 2½% in 1903, and the stock given a first redemption date of 5th April 1923, after which point the stock could be redeemed at par value by Act of Parliament. 1757 was a common year starting on Saturday (see link for calendar). ... 1888 (MDCCCLXXXVIII) is a leap year starting on Sunday (click on link for calendar) of the Gregorian calendar or a leap year starting on Tuesday of the Julian calendar. ... George Joachim Goschen, 1st Viscount Goschen (10 August 1831 - 7 February 1907) was a British statesman and businessman ironically best remembered for being forgotten by Lord Randolph Churchill. ... 1752 was a leap year starting on Saturday (see link for calendar). ... 1855 was a common year starting on Monday (see link for calendar). ... Par value has several meanings depending on the context, whether used in the equities market, or in the bond markets, and partially also dependent on where in the world the par value term is used. ... In Westminster System parliaments, an Act of Parliament is a part of the law passed by the Parliament. ...

Consols still exist today: in their current form as 2½% Consolidated Stock (1923 or after), they remain a small part of the UK Government’s debt portfolio. As the bond has a low coupon, there is little incentive for the government to redeem it. Unlike most gilts, which pay coupons semi-annually, because of its age Consols pay coupons four times a year. Also, as a result of its uncertain redemption date, they are typically treated as a perpetual bond.

Given their long life, references to Consols can be found in many places, including literature, such as David Copperfield by Charles Dickens, Howards End by E. M. Forster, and Vanity Fair by William Makepeace Thackeray. It has been suggested that David Copperfield (character) be merged into this article or section. ... Dickens redirects here. ... Howards End is a novel by E. M. Forster, first published in 1910, which tells a story of class struggle in turn-of-the-century England. ... E. M. Forster aged 36 in 1915 Edward Morgan Forster (January 1, 1879 – June 7, 1970) was an English novelist, short story writer, and essayist. ... Title-page to Vanity Fair, drawn by Thackeray, who furnished the illustrations for many of his earlier editions Vanity Fair: A Novel without a Hero is a novel by William Makepeace Thackeray that satirizes society in early 19th-century England. ... William Makepeace Thackeray William Makepeace Thackeray (18 July 1811 – 24 December 1863) was an English novelist of the 19th century. ...