Perpetual Bond: Perpetual bond is a Non redeemable bond with no maturity date that pays regular interest rates indefinitely. Perpetual bonds are not redeemable buy pay a steady stream of interest forever. Since perpetual bond payments are similar to stock dividend payments – as they both offer some sort of return for an indefinite period of time.
The Price of a perpetual bond is therefore the fixed interest payment, or coupon amount, divided by some constant discount rate, which represents the speed at which money loses value over time. Perpetual preferred usually have a fixed cumulative dividend and have no maturity, like common stock.
A no-growth common stock is a stock whose value do not increase on the exchanges and the only opportunity one has to earn from it is from the dividends that it declare. It has a similarity with the perpetual bond is a way that in both of the financial instruments the only opportunity to earn is from the yield/dividends and not from the market value and tradability of the instruments.