Office of Management and Budget  Print this document 
OMB Circular No. A94APPENDIX
C

3Year 
5Year 
7Year 
10Year 
30Year 
Real Discount Rates. A forecast of real interest rates from which the inflation premium has been removed and based on the economic assumptions from the 2004 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
of Specified Maturities (in percent)
3Year 
5Year 
7Year 
10Year 
30Year 
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.