Junk bonds are high risk, high yield debt instruments.They are often used to finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength.

Question

Quizplus · Accepted Answer

Junk bonds are indeed high-risk, high-yield debt instruments that are often used in financing leveraged buyouts and mergers, as well as providing financing to companies with less than stellar financial health.

Junk Bonds Are High Risk, High Yield Debt Instruments