Perpetuity

Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how exactly does that work? Let's take a look at some examples to give you an idea. perpetual bond is a consol, which is issued by the British government. People who hold that bond will receive interest payments forever. If they sell the bond, the next purchaser will receive the interest payment until they sell it or bequeath it to their heirs. Unlike other types of bonds, the consol does not have a maturity date, so as long as it is out there, it will pay interest to whomever owns it - forever.