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Irredeemable security
 

 

A security which does not bear a date at which the capital sum will be paid off or redeemed, e.g. 2½ per cent consols or certain debentures. Sometimes called undated securities. Possession of an irredeemable security entitles the owner to interest payments but not to repayment of face-value capital. This affects the price at which the security is marketable. For example, 2½ per cent consols which are irredeemable £100 stock bearing 2½ per cent interest might, depending on prevailing interest rates, fetch only about £50, i.e. the price at which they will give a 5 per cent yield. If this stock were redeemable in one year's time, their price would obviously be very much higher.

Reference: The Penguin Dictionary of Economics, 3rd edt.