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junk bond

DEFINITIONS OF: junk bond

1

n a (speculative) bond with a credit rating of BB or lower; issued for leveraged buyouts and other takeovers by companies with questionable credit

Synonyms:
high-yield bond
Type of:
bond, bond certificate
a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal
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