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In other words, a junk bond maturing in 4 years that is trading at a discount is likely more to do with the credit quality of the underlying company and not a concern over an increase in rates.

Thanks for the insight.

The important thing for me to remember, when looking at overall portfolio performance, is to ignore the drops in NAV on bond positions when looking at total return.

I have to remind myself that, so long as the company is still in business (not bankrupt) at maturity, I will get back my entire principal and come back to even.

;-)
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