From: john boyle 
Newsgroups: uk.finance
Subject: Re: Present value of a growing perpetuity that grows nonlinearly.
Date: Sun, 16 Apr 2006 12:11:57 +0100

In message <1145125841.754651.211760@i39g2000cwa.googlegroups.com>, 
DarkProtoman  writes

>> Perhaps I am missing something simple here, but I will press on anyway.
>>
>> Are you saying that the coupon isnt paid out? Usually, bonds pay out the
>> interest and only the par value is payable on redemption.
>> --
>> John Boyle
>
>What would be the point of that? It would be tantamount to taking their
>money and giving them a worthless piece of paper. Obviously, you don't
>understand perpetuities. A perpetuity, you pay the company the par
>value, and it pays out a steady stream of interest forever.

So the interest IS paid out then? In that case, on redemption your 
company pays back the par value?


>I know a
>great and extremely cheap way for companies to issue debt: a zero
>coupon perpetuity; use what you know about a perpetuity and a zero
>coupon bond to figure out the joke :-)
>

Quite, I cant see anybody buying it!
-- 
John Boyle