The security that is referred to as a perpetual bond is
A) convertible bond.
B) GNMA.
C) preferred stock.
D) jumbo CD.

Name: The security that is referred to as a perpetual bond is A) convertible bond. B) GNMA. C) preferred stock. D) jumbo CD.
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Question

Quizplus · Accepted Answer

Preferred stock is often considered a perpetual bond because it pays a fixed dividend that does not have a maturity date, similar to how perpetual bonds pay fixed interest indefinitely.

The Security That Is Referred to as a Perpetual Bond