A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence. For example, the United Kingdom government issued them in the past; these were known as consols and were all finally redeemed in 2015.
Step-by-step explanation:
Example:
Although perpetuity is somewhat theoretical (can anything really last forever?), classic examples include businesses, real estate, and certain types of bonds. One of the examples of a perpetuity is the UK's government bond that is known as a Consol.
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Answer:
A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence. For example, the United Kingdom government issued them in the past; these were known as consols and were all finally redeemed in 2015.
Step-by-step explanation:
Example:
Although perpetuity is somewhat theoretical (can anything really last forever?), classic examples include businesses, real estate, and certain types of bonds. One of the examples of a perpetuity is the UK's government bond that is known as a Consol.