By Corey Mann Junk Bonds have the potential to produce substantial profits if the issuing company improves over time. So, what are junk bonds? And are they good investments to make? Let’s take a closer look below.
What are Junk Bonds Exactly?
Bonds are fixed-income debt instruments that corporations and governments issue to investors to raise capital. In general, the investor is effectively loaning money to the issuer. And as a result, the issuer promises to repay the money on a specific date. This date is known as the maturity date. Many bonds also offer interest payments along the way which investors call coupons.
However, what …read more
