Table: Best Bond Buys

INVESTMENT AVG. YIELD* COMMENT

HIGH-YIELD BONDS 13.4% Rich yields compensate investors for risks; avoid troubled sectors like telecom

I-BONDS 5.9% Inflation-indexed U.S. savings bonds earn a guaranteed annual rate, recently 3%, plus a second rate pegged to inflation

INVESTMENT-GRADE 5.9% Bargains in battered auto industry bonds CORPORATES like those of Ford and General Motors

MORTGAGE-BACKED 5.7% Home mortgages securitized by Ginnie Mae, SECURITIES Fannie Mae, and Freddie Mac yield 2.1 per- centage points more than Treasuries, the widest gap in more than a decade

U.S. GOVERNMENT 4.0% Debt issued by Fannie Mae and others boast AGENCY SECURITIES solid credit quality and yields that are 0.6 percentage point above U.S. Treasuries * As of Oct. 29

Data: BusinessWeek, Lehman Bros., Treasury Dept.

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