What is a junk bond?

QuestionsWhat is a junk bond?
Deepak Goyal asked 1 month ago
   
3 Answers
Akshaj Singh answered 1 month ago
Junk bonds are bonds that have a low credit rating. They are usually issued by companies with poor financial health and interest rates that are higher than the average. Junk bonds are considered high risk investments because they have a high probability of defaulting on their obligations.  
Nikhil Rawat answered 1 month ago
Junk bonds are a type of high-risk debt security issued by companies that have a low credit rating. These bonds are considered risky because they carry higher interest rates than other types of securities, which means they're more likely to default on their payments.  
Priya Vishwas answered 1 month ago
A junk bond is a type of high-yield corporate bond that is usually issued by a company with poor credit quality. Junk bonds are also known as "speculative grade", "non-investment grade", or "high-yield".