Undated Issue


DEFINITION of 'Undated Issue'

A government bond that has no maturity date, and pays interest in perpetuity. While the government can redeem an undated issue if it so chooses, since most existing undated issues have very low coupons, there is little or no incentive for redemption. Undated issues are treated as equity for all practical purposes due to their perpetual nature, and are also known as perpetual bonds.

BREAKING DOWN 'Undated Issue'

Perhaps the best-known undated issues are the U.K. Government's undated bonds or gilts, of which there are eight issues in existence, some of which date back to the 19th Century. The largest of these issues presently is the War Loan, with an issue size of £1.9 billion and a coupon rate of 3.5% that was issued in the early 20th century.

  1. Coupon

    The annual interest rate paid on a bond, expressed as a percentage ...
  2. Perpetual Bond

    A bond with no maturity date. Perpetual bonds are not redeemable ...
  3. Perpetuity

    A constant stream of identical cash flows with no end. The formula ...
  4. Gilts

    Bonds that are issued by the British government and generally ...
  5. Maturity Date

    The date on which the principal amount of a note, draft, acceptance ...
  6. Bond

    A debt investment in which an investor loans money to an entity ...
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