What is Junk Bond (High-Yield Bond)? | SIE, SERIES7, SERIES65, SERIES66 Exam Prep

A junk bond is a corporate bond rated below investment grade (BB+/Ba1 or lower) that offers higher interest rates to compensate investors for the increased risk of default. 📚 Learn more about Junk Bond (High-Yield Bond) and other key terms for your SIE, SERIES7, SERIES65, SERIES66 exam at Open Exam Prep. 🎯 This term appears on: SIE, SERIES7, SERIES65, SERIES66 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Junk Bond (High-Yield Bond) definition: https://www.open-exam-prep.com/glossary/junk-bond 💡 Exam Tip: Junk = BB+/Ba1 and BELOW (below investment grade). Higher yield compensates for higher default risk. Also called "high-yield bonds." --- #securities #examprep #financeexam #sie #series7 #series65 #series66