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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Night Trader who wrote (79346)2/26/2007 10:34:47 PM
From: John Vosilla  Respond to of 110194
 
Cap rates or for that matter any discount rate used in a cash flow model should already reflect real growth + risk + illiquidity over and above the risk free rate used as the benchmark (normally the 10 yr treasury). As the 10 year treasury already has inflation expectations built into the rate it is thus built into the cap rate.. We probably are saying the same thing?