Black Swan Development Co Ltd ('Swanco') is a Fiji company. Shares of Swanco are largely owned by Chinese investors. Swanco is a subsidiary of Evergreen Limited a large China company. Both Swanco and its parent are engaged in the business of land development.

Swanco has a number of development projects in Fiji. Funding for the company's projects is being raised by an issue of bonds to Fiji investors. The bonds are formally called the 'Swanco $100 7 year 7 percent Registered Bonds'. The company plans to issue bonds having an aggregate face value of FJD $28 million.

The company announces that of the planned bond issue has already been placed with Fiji institutions priced at $101. The remaining has been reserved for retail investors and priced at $99.50. Members of the public have shown considerable interest in the offering and close to 80% of the bonds reserved for retail investors have already found buyers.

Required:

1. State the two promises seen in the Swanco bonds.
2. Which investor group will get the better return on investment, the institutional investors or the retail investors? Explain your answer.
3. Will Swanco establish a register of debenture holders? Be specific.