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As far as I understand perpetual bonds are endless and don't mature. So why would anybody invest in one that does not yield? You don't know when/if they are going to pay.

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    Do you have an example of such a bond? Mar 5, 2016 at 14:13
  • some perpetuals do get redeemed recently the UK retired some consols dating back to the Napoleonic wars.
    – Pepone
    Mar 5, 2016 at 15:57
  • @Pepone The Consols paid no interest? Mar 5, 2016 at 16:52
  • @DilipSarwate no why would a bond not have a coupon
    – Pepone
    Mar 5, 2016 at 17:14
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    @Pepone You seemed to be pointing out consols as examples of the perpetual no-coupon no-interest bonds that the OP was talking about, and saying that consols were redeemed recently Mar 5, 2016 at 18:09

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I've only heard of zero yield perpetual bond in the context of a trick interview question. They would ask how much would you pay for a perpetual zero coupon bond.

The idea is you would pay zero for it since you don't get any coupons, and you never get your money back.

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