Junk bonds are also known as

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Junk bonds are known as high yield bonds because they offer a higher yield compared to investment-grade bonds. The higher yield compensates investors for the increased risk of default associated with junk bonds. Treasury bonds are considered the safest investment and have the lowest yield. Low yield bonds would be investment grade bonds because they offer lower yields than junk bonds. Munis are a type of bond issued by state and local governments.

Junk Bonds Are Also Known as