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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Junk Bond

Definition:

See high yield bond. A junk bond comes from a company that has a bad rating from Moody's or another rating agency. The idea is that you might lose your money because the company that issued the bond has lousy credit. On the plus side, junk bonds are usually cheap. You get what you pay for.