# how to calculate nominal discount rate and real discount rate

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Thread starter 6 years ago
#1
Hey I am really stuck for my exams on nominal and real discount rate

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.
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6 years ago
#2
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).
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Thread starter 6 years ago
#3
(Original post by insayan)
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).
Hey thanks for getting back to me, its not actually a question, we have been given our pre seen exam material and my exams on monday so the pre seen mentions the nominal discount rate and its real discount rate so was just wondering what type of questions may come up regarding them.
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