A PEPETUITY 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 (UK) government issued them in the past; these were known as consols and were all finally redeemed in 2015. Real estate and preferred stock are among some types of investments that affect the results of a perpetuity, and prices can be established using techniques for valuing a perpetuity.[1] Perpetuities are but one of the time value of money methods for valuing financial assets. Perpetuities are a form of ordinary annuities.
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A PEPETUITY 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 (UK) government issued them in the past; these were known as consols and were all finally redeemed in 2015. Real estate and preferred stock are among some types of investments that affect the results of a perpetuity, and prices can be established using techniques for valuing a perpetuity.[1] Perpetuities are but one of the time value of money methods for valuing financial assets. Perpetuities are a form of ordinary annuities.
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