how to calculate nominal discount rate and real discount rateWatch
the nominal discount rate is 13% and the real discount rate is 11%, I am unable to understand how I would go about solving this. Please could somebody shine a light on this situation for me. Thank you.
Can you specify your question? If both discount rates are stated why would you calculate them? The nominal discount rate inlcudes an inflation premium of approximately 2% (Nominal discount rate - real discount rate), or more precisely 1,8018% (1+Nominal Discount rate / 1+real discount rate).