A perpetual bond, which is also known as a Perpetual or just a Perp, is a bond with no maturity date. Perpetual bonds pay coupons forever, and the issuer does not have to redeem them. Their cash flows are therefore that of a perpetuity. Maturity date is a term in finance - a date when a bond could be called. ... 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 finance, cash flow refers to the amounts of cash being received and spent by a business during a defined period of time, usually tied to a specific project. ... A perpetuity is an annuity in which the periodic payments begin on a fixed date and continue indefinitely. ...

Examples of perpetual bonds are consols issued by the UK Government. Most perpetual bonds that are issued nowadays, are deeply subordinated bonds issued by banks. The bonds are counted as Tier 1 capital, and help the banks fulfil their capital requirements. Most of these bonds are callable, but the first call date is never less than ten years from the date of issue. 216.56.38.194 17:21, 27 February 2007 (UTC) Consols (short for consolidated annuities[]) are a form of British government bond (gilt), dating originally from the 18th century. ... Tier 1 capital is the core measure of a banks financial strength from a regulators point of view. ... Banks and depository institutions are regulated by governments to disclose and handle their capital in a certain way. ...