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

Question

Quizplus · Accepted Answer

Perpetual bond refers to a type of preferred stock that has no maturity date, so it pays a fixed dividend indefinitely. It is often viewed as a hybrid security, combining elements of both equity and debt. Convertible bonds, GNMA, and jumbo CDs are not considered perpetual bonds.

The Security That Is Referred to as a Perpetual Bond