... the forward rate at 14 years clearly defies economic sense.The graph says that investors demand 6.44% to lend money for sixmonths, 14 years forward while they require only 5.65% to lend money for ... all previousforwards. Therefore, it takes a relatively large move in one of the for- ward rates to move the average by one basis point, particularly at longmaturities when many forwards make ... perpetuity, a bond that pays coupons for- ever, equals the coupon divided by the yield. For example, at a yield of5.50%, a 6.50 coupon in perpetuity will sell for 6.50/5.50%or approximatelyATcyyT()=−+1112244...