Examlex
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.
Rational Investor
An investor who makes decisions based on factual information and logical evaluation to maximize returns and minimize risks.
Interest Rate
The fee, represented as a portion of the total amount borrowed, that a lender imposes on a borrower for utilizing funds.
Bond
A bond is a fixed income instrument that represents a loan made by an investor to a borrower, often used by companies, municipalities, states, and sovereign governments to finance projects and operations.
Investment
The allocation of resources, usually money, in the expectation of generating an income or profit.
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