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A counterfeit or damaged penny.

Additional definitions for 'bad penny':

bad pennyA person or thing which is unpleasant, disreputable, or otherwise unwanted, especially one which repeatedly appears at inopportune times.
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"bad penny." Phrases.net. STANDS4 LLC, 2017. Web. 25 Nov. 2017. <http://www.phrases.net/phrase/bad-penny_2179>.

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