Lanesborough Real Estate Investment Trust V.LRT.UN

RE:RE:RE:Debentures are paying full interest

[quicksilver545]

I'm not sure where you are getting your information, but that is not how debentures work. Buyers purchase units of the debenture to become a debentureholder, in order to receive interest payments at either maturity, or at the arranged interest rate instalment payment intervals. Buyers are not responsible for paying the accumulated interested to the seller, where did you hear that? The company holds the accumulated interest in the form of debt, which they are obligated to pay out at maturity. Given the extremely unstable nature of the company, and likely default, the debentures trade at an extreme discount to their book value, as the likelihood of default is high, and debenture holders are not high priority on the ladder of debt priority. I suspect that what happened for you is that the broker miscalculates the unit price from 0.0180 per unit, to 1.80 per unit. That happened to me, but was quickly corrected the next day in my trading activity. Other posters do bring up a good point about tax, and how because of the high accumulated interest, and how it will pay out, having these in tax-sheltered accounts is a must.