Glossary

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Perpetual bond

A perpetual bond has no fixed term. Repayment occurs only in the event that the company is liquidated. However, it is possible to provide for premature repayment. The interest rate is either fixed for the entire term or fixed for an initial period (for example, ten years) and subsequently determined for additional periods of equal length in accordance with a formula laid down by the terms and conditions of the bond.

See alsoBond
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