Only The Most Financially Savvy Can Pass This Monetary Terms Quiz

Karyn Bailey|General Knowledge|13 Jan 2020

What is a junk bond?

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A man opens his trench coat to reveal dozens of credit cards.
Retry Correct Incorrect Junk bonds are issued by businesses that are not financially secure and therefore have a higher interest rate. While they provide a greater return than regular bonds, they also are more likely to default.
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Stephen Osman/Los Angeles Times via Getty Images
Stephen Osman/Los Angeles Times via Getty Images

What is a junk bond?

  • A bond that was legally invalid
  • A bond that has surpassed the maturity date
  • A bond belonging to a company that no longer exists
  • A bond that has a high risk of default
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