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Friday, July 20, 2012 12:41:07 AM
Debentures are a fixed-interest, fixed term
investment. They are offered by finance and
industrial companies which are referred to as
issuers. They usually offer a higher return than
is available from other fixed interest investments.
Returns are based on a combination of official
interest rates and loan rates depending on the
issuer's lending practices. They are not risk free
investments.
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