Junk Bond
A bond rated 'BB' or lower because of its high default risk.
Also known as a "high-yield bond" or "speculative bond". Investopedia Says:
These are usually purchased for speculative purposes. Junk bonds typically offer interest rates three to four percentage points higher than safer government issues. Related Terms:
Bond
Bond Rating
Credit Quality
Default Risk
High-Yield Bond
High-Yield Bond Spread
Investment Grade
Speculative Risk
Stub
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