Chapter 3 Valuing Bonds 65
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◗ FIGURE 3.8
The return on Treasury bills and the
rate of inflation in the U.K., U.S.,
and Germany, 1953–2014.
Source: E. Dimson, P. R. Marsh, and M. Staunton,
Triumph of the Optimists: 101 Years of Invest-
ment Returns (Princeton, NJ: Princeton Univer-
sity Press, 2002), with updates provided by the
authors.
(a) U.K.
0
15
20
5
10
25
30
Percent, %
Inflation
Treasury bill return
195319561959196219651968197119741977198019831986198919921995199820012004200720102013
Year
(b) U.S.
0
22
6
8
2
4
10
12
14
16
Percent, %
Inflation
Treasury bill return
195319561959196219651968197119741977198019831986198919921995199820012004200720102013
Year
(c) Germany
22
24
0
2
4
6
8
10
12
Percent, %
Inflation
Treasury bill return
195319561959196219651968197119741977198019831986198919921995199820012004200720102013
Year
BEYOND THE PAGE
mhhe.com/brealey12e
Country interest
rates and inflation