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Junk bonds (view source)

Revision as of 22:42, July 5, 2011

316 bytes added ,  22:42, July 5, 2011
a start
'''Junk bonds''' consist of [[debt]] that is very risky, so much so that it is not considered "investment grade." The chances of the debt never being paid off are simply too high.

Typically junk bonds pay unusually high interest rates in order to compensate the lender for the additional risk.
[[Category:finance]]
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