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A junk bond is a bond with a low credit rating, and hence a higher probability of default.
Junk bonds are also called high-yield bonds because the issuer must provide a higher yield to entice investors to take the larger risk of buying them. Junk bonds, like other bonds, are a contract in which the issuer/seller borrows/receives money from the buyer/investor/lender, with the promise of paying back the money, plus interest, according to an agreed schedule.
Related Links
Forbes: Understanding Junk Bonds
Investopedia’s article on junk bonds
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