Perpetuity Yield Formula (with Calculator)
The formula that is used to calculate the yield on a perpetuity is the payment divided by the present value of the perpetuity. A perpetuity is a form of annuity that has an infinite amount of periodic payments. A few examples of when the perpetuity yield formula may be used, is to evaluate consols in the UK, preferred stocks, and stocks that have zero growth. Typically, investments such as