A microscopic many-body analysis of Bose-Einstein condensation in a strongl
y interacting system of identical bosons is presented in the framework of c
orrelated density matrix theory. With the aid of hypernetted-chain techniqu
es and a replica ansatz for the entropy, the free energy is constructed for
a trial density matrix incorporating temperature-dependent two-point dynam
ical and statistical correlations. The free energy decomposes naturally int
o contributions from phonon excitations and from two types of guasiparticle
excitations (identified as "holes" and "particles"), in addition to a comp
onent that becomes the ground-state energy at zero temperature. The subsequ
ent analysis is conducted in terms Of two order parameters: A condensation
strength B-cc and an exchange strength M. The former measures the breaking
of gauge symmetry associated with the development of off-diagonal long-rang
e order that signals Bose condensation; the latter characterizes the violat
ion of particle-hole exchange symmetry. A description of exchange-symmetry
breaking is formulated in terms of an analogy with the behavior of a diamag
netic material in a magnetic field, and a physically plausible model for th
e coupling of the oi der parameters B-cc and M is proposed The "particle" a
nd "hole" excitation br branches coincide in the normal phase, but follow d
ifferent dispersion relations in the condensed phase, where exchange symmet
ry is broken. In a first application of the theory to lambda transition ira
liquid He-4, phonon effects (dominant at very low temperatures) me neglect
ed, and simple parametrized forms are assumed for the dynamical correlation
s and for the hole spectrum, which determines the remaining statistical cor
relations. Numerical results are reported for the two older parameters and
for the quasihole and quasiparticle energies, as functions of temperature t
hrough the condensation point. The calculated specific heat shows the chara
cteristic lambda shape. Exchange symmetry breaking reduces the Bose-Einstei
n temperature from that of the ideal Bose gas to a predicted value near 2.2
K.