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"You miss the point with junk bonds. They do not have to be held to maturity. Suppose Charlie sells the bonds after a year and receives his $600 per bond. He will have received $80 in interest, plus $270 in capital gains for a total return of over 100% in one year. Why should he continue to hold for a potential yield to maturity from this point of about 13%. He would be better off reinvesting in a different issue with potential for larger gains."

I believe the original position was less than $3500. Is it really worth the effort to flip junk bonds for such a small gain (assuming the junk bond flipping strategy works). You might so better getting a part time job and saving money until you have enough to make it worth it.

You seem to assume that you can enter and exit you junk bond positions and make a consistent profit. Although it maybe true, few other people share your talent.
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