Meaning Of The Word Junk bond

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Junk bond Meaning

Junk bond Definition
Junk bond Definition

What's The Definition Of Junk bond?

junk bond
If a company issues junk bonds, it borrows money from investors, usually at a high rate of interest, in order to finance a particular deal, for example the setting up or the taking over of another company.

junk bond in American English
a high-yield, speculative bond1 (sense 10), often issued to finance the takeover of a corporation
noun: any corporate bond with a low rating and a high yield, often involving high risk

junk bond in British English
noun: a security that offers a high yield but often involves a high risk of default

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