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sorry this might be silly but:

- when the bond is at 100, they pay 8,5% per year - correct?
- currently you would be getting around 10%

+8,5% is pretty good and if in the next year of so the price goes up you can also make a profit on the price of the bond?

wishful thinking?

If GM manages to stay alive and pay off its debt, you should be able to sell for more than you paid for the bond down the road, or choose to hold to maturity, when Paul is a youthful 80 (from the point of view of an 83 year-old).

Whether GM survives is a matter of debate. I believe the market is actually pricing these for less risk than a year ago (I didn't actually check the numbers). But don't expect a government bailout. Chapter 11 has become very convenient—it only hurts workers and small investors, not executives and turnaround specialists. Bondholders might get some of the crumbs.
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