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INVESTMENT          AVERAGE YIELD*      COMMENT



EMERGING MARKETS       10.25%           Argentina's fiscal troubles aside,
BONDS                                   this sector is humming and should
                                        continue to do well in 2002.



HIGH-YIELD BONDS       12.92            As the economy recovers, junk bonds
                                        should, too. Potentially the bond
                                        market's biggest winner over the
                                        next 12 months.



INVESTMENT-GRADE        6.43            Stick with blue-chip companies with
CORPORATES                              the resources and cash flow to
                                        survive today's tough business
                                        climate.



MORTGAGE-BACKED         6.36            Securities issued by Ginnie Mae,
SECURITIES                              Fannie Mae, and Freddie Mac yield
                                        as much as two percentage points
                                        more than Treasuries.



* Dec. 14



Data: Merrill Lynch, BusinessWeek