A fixed-rate debenture is a municipal debt instrument where the interest rate remains constant throughout the loan's term. When a municipality issues a fixed-rate debenture, the interest rate is set at issuance and doesn't change regardless of how market interest rates move over the following years. This provides payment certainty—the municipality knows exactly what its debt servicing costs will be for budget planning. Fixed rates protect against rising interest rates but don't benefit if rates fall. Most Canadian municipal debentures are fixed-rate, reflecting municipalities' preference for predictable long-term financing. The interest rate obtained depends on market conditions at issuance, the municipality's credit rating, and the debenture's term length. Fixed-rate debentures are contrasted with floating-rate instruments where interest costs vary with market rates.