OMB Circular No. A94 APPENDIX C DISCOUNT RATES
FOR COSTEFFECTIVENESS, LEASE PURCHASE, Effective Dates. This appendix is updated annually around the time of the President's budget submission to Congress. This version of the appendix is valid through the end of January 2000. Copies of the updated appendix and the Circular can be obtained from the OMB Publications Office (2023957332) or in an electronic form through the OMB home page on the worldwide WEB, /OMB. Updates of this appendix are also available upon request from OMB's Office of Economic Policy (2023953381), as is a table of past years' rates. Nominal Discount Rates. Nominal interest rates based on the economic assumptions from the budget are presented below. These nominal rates are to be used for discounting nominal flows, which are often encountered in leasepurchase analysis. Nominal Interest
Rates on Treasury Notes and Bonds
Real Discount Rates. Real interest rates based on the economic assumptions from the budget are presented below. These real rates are to be used for discounting real (constantdollar) flows, as is often required in costeffectiveness analysis. Real Interest
Rates on Treasury Notes and Bonds
Analyses of programs with terms different from those presented above may use a linear interpolation. For example, a fouryear project can be evaluated with a rate equal to the average of the threeyear and fiveyear rates. Programs with durations longer than 30 years may use the 30year interest rate.
