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Q: Why would someone invest in a junk bond?
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What type of bond is a junk bond?

A junk bond is one which is of very high risk. This type of bond will mean that a person may never get the money back which they invest into the bond itself.


Why would investors buy a junk bond?

Firsly investors buy junk bond because they are cheaper.Although they have higher risk of default they also have higher return.


When was Junk Bond Observatory created?

Junk Bond Observatory was created in 1996.


Why would a person invest in junk bonds-?

"Junk" bonds pay a higher interest rate than high-quality bonds, in order to compensate for the risk of default. junk bonds can pay very high interest rates (gradpoint)


What is a silver lock bond?

junk bond


Type of bond that is exceptionally risky?

junk bond


Is a zero coupon bond a junk bond?

depends on the collateral supporting the bond.


Why would investors buy junk bonds?

Firsly investors buy junk bond because they are cheaper.Although they have higher risk of default they also have higher return.


Is Altmark Holdings Bond legitimate?

It does not appear as quoted company on FT screens. Looks like junk bond to me, at 14% they would be buried in applications from their own country alone.


Is it a good idea to purchase a junk bond considering the current economy?

Purchasing one can be good for you depending on your financial situation. But if you don't have the funds to invest right now you may want to hold off until things pick up.


What type of bond is most likely to default?

Junk bonds


What is the maturity on junk bonds?

Depends on the individual bond. Look for the date on the certificate.