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Getting the Most Out of Bonds

Low interest rates have hurt many retirees, who may be tempted by high yields. Big mistake, warn the experts, who offer some safer solutions

By Amey Stone

Sure, the Federal Reserve has given the economy a boost with 10 interest-rate cuts so far this year. But it has also whittled away at Americans' options for earning a decent income from safe investments. A one-year CD now yields just 2.17% on average while a money-market account brings a mere 1.8%, according to Bankrate.com. Lock up your money for 10 years in a U.S. Treasury bond and you get 4.9% a year.