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Financial Terms

Junk Bonds

A Junk Bond, or high-yield bond, is a form of debt issued by a company with a less-than-ideal credit rating. These bonds offer higher interest rates than traditional corporate bonds, making them attractive to investors seeking higher returns. However, they also carry a higher risk due to the lower creditworthiness of the issuer. As such, investors must carefully assess the potential risks and rewards before investing in junk bonds.
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