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In 1987, Reginald Lewis purchased Beatrice International Foods for $985m with the help of Michael Milken and Drexel Burnham Lambert. In this video, we explore how bonds (especially high-yield or "junk" bonds) work by quickly examining this deal and the circumstances around them in the Reagan and Thatcher years of the 1980s. This was a time of Volcker tightening monetary policy, while the government cut corporate tax rates.