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Junk bond

A high yield bond, also known as a junk bond, is a type of bond that offers a higher rate of return due to its higher level of credit risk. This means that the issuer of the bond has a lower credit rating, making it riskier for investors. However, this higher risk also comes with the potential for higher returns. It is important for investors to carefully consider the credit risk associated with high yield bonds before making any investment decisions.
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