TY  - JOUR
AU  - Hendershott,Patric H.
TI  - Debt and Equity Returns Revisited
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1521
PY  - 1984
Y2  - December 1984
UR  - http://www.nber.org/papers/w1521
L1  - http://www.nber.org/papers/w1521.pdf
N1  - Author contact info:
Patric H. Hendershott
Fisher Hall
Ohio State University
2100 Neil Avenue
Columbus, OH 43210
Tel: 218/963-1393
Fax: 218/963-9484
E-Mail: hendershott.2@osu.edu
M1  - published as Patric H. Hendershott. "Debt and Equity Returns Revisited," in Benjamin M. Friedman, ed., "Financing Corporate Capital Formation" University of Chicago Press (1986)

AB  - This paper examines semiannual ex post returns on corporate equities and bonds and six-month Treasury bills over the 1953-84 period with special emphasis on whether returns so far in the 1980s have been usual relative to the previous quarter century. The performance of the equity and bond markets in the 1980s has not been at all unusual, with equity returns being driven by the business cycle and bond returns by unexpected changes in new issue Treasury bond rates. Real six-month Treasury rates have averaged 5½ percentage points,far above the 2 percentage point average since 1953 but about the same as in the 1926-30 period. On an after-tax (roughly 40 percent) basis,however, real bill rate have been in line with the 1950s and 1960s, but significantly above the abnormally low rates in the 1970s.
ER  -