A perpetuity's an annuity that's no definite end, or a stream of cash payments that continues forever. There're few actual perpetuities in existence (although the British government has issued them in the past, and they're known and still trade as consols). A number of types of investments are effectively perpetuities, such as real estate and preferred stock, and techniques for valuing a perpetuity can be applied to establish price. Perpetuities are but one of the time value of money methods for… (More on Perpetuity)