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junk bond definition - finance
Bonds that have a credit rating of BB or below. Bonds that have a junk rating are often issued by companies or municipalities that have a bad or uncertain credit rating. Also called high-yield, high-risk, or below-investment grade bonds.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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