Why might you use the anticipated rate of inflation as the discount rate when calculating present value?
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Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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The most common discount rate is the inflation rate Using the i...View the full answer
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Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0133856439
7th edition
Authors: Arthur J. Keown
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