Principles of Corporate Finance_ 12th Edition

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Chapter 3 Valuing Bonds 65


bre44380_ch03_046-075.indd 65 10/08/15 10:45 AM


◗ 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

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Country interest
rates and inflation
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