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View Full Version : Initial Response; Perpetual bonds are similar to a no-growth common stock ?


jimdonna
Aug 14, 2010, 08:47 PM
A bond that pays interest forever and has no maturity is a perpetual bond. In what respect is a perpetual bond similar to a no-growth common stock? Are there preferred stocks that are evaluated similarly to perpetual bonds and other preferred stocks that are more like bonds with finite lives? Explain.

jimdonna
Aug 14, 2010, 08:47 PM
A bond that pays interest forever and has no maturity is a perpetual bond. In what respect is a perpetual bond similar to a no-growth common stock? Are there preferred stocks that are evaluated similarly to perpetual bonds and other preferred stocks that are more like bonds with finite lives?

jimdonna
Aug 14, 2010, 08:50 PM
Perpetual bonds are similar to a no-growth common stock

morgaine300
Aug 14, 2010, 11:53 PM
This sounds like homework questions. Please see the guidelines on posting homework:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html

Also one posting of your question will suffice.