The ____ is the current interest rate appropriate for discounting a cash flow of some given maturity.

Question

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The spot rate is the current interest rate used to discount a cash flow that is expected at some future date. It is the appropriate rate for discounting a cash flow of a given maturity. The forward rate is the expected interest rate applicable for a future time period, and the future spot rate and futures rate are not commonly used in the calculation of present values.

The ____ Is the Current Interest Rate Appropriate for Discounting