I'm retired and depend on bond income to supplementsocial security. You might want move some of your investment into corporate bonds to increase your yield.There is potentially more risk, but not if you research the company. Most of my investment is currently inWickes Inc; I was in the building products businessand have studied most of the companies very carefully.Wickes (WIKS)is a 'turnaround' situation and insteadof trying to compete with Home Depot and Lowes has found a lucrative niche selling almost exclusively tobuilding contractors. Sales last year topped $1 billionand PE ratio has dropped below 6 with a comfortable backlog in hand. They have one bond maturing in 2003.It pays 12 5/8% and because it is trading at 85, yieldis presently 13.6% per annum; thus there is a 16.7%yield to maturity because of the capital gain componentUnfortunately, bonds like these are as rare as hen'steeth and don't know what I will switch to when theymature. Maybe higher interest rates will stimulate thecorporate bond market again. - - matthew
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