Perpetual Bonds:

A bond which have no maturity(Issue for unlimited period of time) or in simple a perpetuity in the form of bonds .We can find intrinsic value of perpetual bond by formula mentioned below

There are two characteristic

1)      No Maturity

2)      Coupon rate

Intrinsic value = V = I/r

Where I stand for amount of interest or expected income on bond.

I = Par value of bond * Coupon rate

Example of Perpetual bond:

The British CONSOL is the example of perpetual bond.