It is shown that the generalized Ginzburg-Landau free-energy functional of Blount and Varma admits self-consistent solutions with quantized-flux vortices, magnetized in a region about the cores. There is a temperature range where the new phase has a lower free energy than either the pure superconducting or pure ferromagnetic phases; it represents true coexistence of ferromagnetism and superconductivity. The main features of the specific heat and magnetic properties of some rare-earth ternary compounds can be explained qualitatively.
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