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In a certain world, the interest rate is called the risk-free rate. Discount rate is the rate used to calculate the present value of some future cash flow. Discounted   11 Jun 2019 Risk-free rates, alternatively, are generally calculated as the weighted average rate from actual overnight lending between banks. Given the  16 Jan 2019 We have discussed Capital Asset Pricing Model, used in Discounted Cash Flow Method, to calculate Cost of Equity in our earlier blogs.

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