Encyclopedia of Investment Terminology

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Perpetual Debt (PD)

Perpetual debt is debt from a bond that does not have a maturity date. It will pay off interest until a group that issued that bond buys it back. It can work in a cumulative form where debt grows when payments are lost and in a noncumulative form where the cash flow stops after a payment is missed and the flow does not continue until the payment is resumed.

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