Initial Response; Perpetual bonds are similar to a no-growth common stock ?
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.
Initial Response; Perpetual bonds are similar to a no-growth common stock by way of,
Perpetual bonds are similar to a no-growth common stock