Autumn 2000 issue of the Expert Witness newsletter (volume 5, issue 3)


  • Selecting the Discount Rate
    • by Christopher Bruce
    • In this article we begin by providing clear definitions of a number of fundamental concepts. These include: real interest rate; nominal interest rate; discount rate; real return bonds; and core rate of inflation. We then summarise the recent statistical data for various measures of inflation and interest rates in Canada. Finally, we use those data to calculate the “real interest” rate and to forecast a long-run discount rate. We conclude from this analysis that that rate appears to be 4.0 percent. However, as there has been some recent volatility in interest rates, we propose to revisit our forecast a year from now.
  • Ontario’s Mandated Discount Rate – Rule 53.09(1)
    • by Christopher Bruce
    • In this article Chris Bruce discusses the recent changes to Ontario’s mandated discount rate – as specified in their Rule 53.09(1).