DEFINITION of 'Delayed Perpetuity'
A perpetual stream of cash flows that start at a predetermined date in the future. For example, preferred fixed dividend paying shares are often valued using a perpetuity formula. If the dividends are going to originate (start) 5 years from now, rather than next year, the stream of cash flows would be considered a delayed perpetuity.
INVESTOPEDIA EXPLAINS 'Delayed Perpetuity'
The net present value (NPV) of a delayed perpetuity is less than a comparable ordinary perpetuity because, based on time value of money principles, the payments have to be discounted to account for the delay. Retirement products are often structured as delayed perpetuities.

Perpetual Preferred Stock
A type of preferred stock that has no maturity date. The issuers ... 
Preferred Stock
A class of ownership in a corporation that has a higher claim ... 
Perpetuity
A constant stream of identical cash flows with no end. The formula ... 
Dividend Discount Model  DDM
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Present Value  PV
The current worth of a future sum of money or stream of cash ... 
Good Student Discount
An auto insurance policy discount available to young drivers ...

For what types of financial instruments would I want to calculate the present value ...
Because the present value of an annuity formula relies on a consistent interest rate and identical payments for a set period ... Read Full Answer >> 
What exact information is included in the interest rate when calculating the present ...
When calculating the present value of an annuity, the interest rate percentage is the rate at which future payments are discounted ... Read Full Answer >> 
How do you calculate a present value of annuity using Excel?
Calculating the present value of an annuity using Microsoft Excel is fairly straightforward if you know the interest rate, ... Read Full Answer >> 
What is the difference between the present value of an annuity and the future value ...
The present value of an annuity represents the sum that must be invested now to guarantee a desired payment amount in the ... Read Full Answer >> 
Why would I need to calculate the present value of an annuity?
To calculated the present value of an annuity, all that is needed is the interest rate, payment amount and number of periods ... Read Full Answer >> 
Is Social Security Income a perpetuity?
Because Social Security income does not continue indefinitely, it cannot be classified as a perpetuity. What Is a Perpetuity? A ... Read Full Answer >>

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