Look at Table 12.1 and Figure 12.7 in the text. When were T-bill rates at their highest over the period from 1926 through 2016? Why do you think they were so high during this period? What relationship underlies your answer? 

Table 12.1

Figure 12.7

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5.69% 3.30% -1.12% 6.58 3.15 -2.26 15 405 -116 4 39 4 47 447 -6 40 227 -215 1.15 -10.27 8.51 88 76 1.92 1.52 7.59 4.20 2.99 5 13 1.45 2.86 144 421 -2.78 3.84 00 5 70 9 93 903 296 180 201 227 230 225 5.29 18 13 54 -102 2.66 2.99 4.58 -2.07 -98 5.93 -20 6.00 2.43 175 75 2.28 1.87 3.08 - 73 180 6.82 3.28 171 3 48 281 -1.72 -2.02 11.21 2.40 2.20 5.72 2.82 1 79 3.23 3.71 3.62 4.06 5 12 346 4,94 -2.86 4.39 3 49 225 6.90 5.57 18.92 6.50 11.24 4.36 2 39% 3.41% 4.23% 8.71 3.30 7.29 4.00 12.34 7.99 5 52 15 56 694 587 486 507 6 70 .02 13 29 12 52 38 545 -1 26 10 56 -2.76 12.10 -248 8.92 4.04 14.60 44.28 10.94 3.83 1.29 899 3.79 15.29 9.90 3.95 771 32.27 3.80 1 10 22.39 609 443 -303 684 18 54 774 442 465 844 7 60 543 305 1936 3 48 290 734 303 275 13.06 267 4 39 561 5 14 -7.32 2.54 25.94 332 13 1.70 12.02 5.19 161 14.45 4.86 268 -7.51 4.80 3 39 17.22 5.98 1.55 5.51 3.33 2.38 1 88 3 26 15.15 1.61 2.01 94 8.12 114 6 89 3.42 254 4 08 09 2.70 28 10 85 4.52 1 24 41.78 -25 61 15 :דר- 1 50 14 296 35 75 1.80 -14.69 24.74 -64 Long-Term Government Bonds 40 30 20 10 "T -10 -20 1925 1935 1945 1955 1965 1975 1985 1995 2005 2015 Year-end U.S. Treasury Bills 16 14 10 -2 1925 1935 1945 1955 1965 1975 1985 1995 2005 2015 Year-end Total annual returns (in percent) 12 Total annual returns (in percent) 4. 2.