The correct answer is      (B.)  MFS International Income Trust (MIN)

While the S&P 500 lost -15.8% over the past year, MIN shareholders enjoyed total returns of +10.3%. The fund is currently yielding 9.3%.  Investors won't have to sacrifice safety for this near double-digit yield, as MIN is an "AA+"-rated closed-end fund with a mix of high-quality bonds and $803 million in assets. The fund invests in "AAA"-rated U.S. Treasuries and agency bonds, foreign debt of developed countries, and high-grade corporate bonds. Management insulates the portfolio assets from currency volatility by holding them in U.S. dollars. A low duration of 4.4 years limits sensitivity to changing interest rates. The fund also may trade derivatives and use leverage to boost returns.

The fund's new managed distribution policy, along with its holdings of outperforming U.S. Treasuries and foreign government bonds, contributed to its strong results. The policy of holding assets in U.S. dollars keeps the fund from benefiting from the dollar's decline. However, it also makes for more stable returns, which aren't buffeted by currency volatility.

The fund's managed distribution policy calls for the fund to make distributions at a fixed rate of up to 8.5% of the fund's average monthly net asset value each year. An annual management fee of 0.75% of the portfolio assets takes a small bite out of the income available for distribution. In 2007, almost all of the distribution came from earnings and was taxable at the ordinary income rate. However, with the new managed distribution plan this year, the tax breakdown could vary.

Investors are likely continue to seek safe havens amid volatile global markets, and because MIN shares are still selling at a discount of -8.9%, there is money to be made. But when it comes to taxable bond funds, though, you can't just reach for the highest yields or the steepest discounts. You need to look behind the numbers. That's what StreetAuthority editor Carla Pasternak does in every issue of her High-Yield Investing newsletter. Carla introduces readers to safe, stable investments that offer above-average dividend yields and strong capital gains. To learn the names of the other funds Carla recommends in this issue, and to learn more about the High-Yield Investing newsletter, please visit this link.