Junk bonds are bonds that have a relatively high probability of default.

Name: Junk bonds are bonds that have a relatively high probability of default.
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Junk bonds are also known as high-yield bonds and typically have a rating below investment grade (BBB- or lower by Standard & Poor's or Baa3 or lower by Moody's). These ratings indicate a higher probability of default, making them riskier investments but with a potentially higher return.

Junk Bonds Are Bonds That Have a Relatively High Probability