How is a perpetuity distinguished from other bonds?
A)It pays continuously compounded interest.
B)It pays interest only when it matures.
C)It never matures.
D)It will be used to purchase another bond when it matures unless the owner specifies otherwise.

Question

Quizplus · Accepted Answer

A perpetuity is a type of bond that never matures, meaning it pays interest indefinitely. This makes it different from other bonds that have a fixed maturity date and pay interest until that date.

How Is a Perpetuity Distinguished from Other Bonds