A bond that never matures is known as a
A)perpetuity.
B)an intermediary bond.
C)an indexed bond.
D)a junk bond.

Question

Quizplus · Accepted Answer

A perpetuity is a bond that has no maturity date and pays a fixed stream of income indefinitely. It is also known as a consol bond, and it is often issued by governments as a way to finance their debt. The holder of a perpetuity receives a fixed interest payment, usually on an annual basis, for as long as they hold the bond.

A Bond That Never Matures Is Known as a