Kroll Recommended
U.S. Equity Risk Premium (ERP) andCorresponding Risk-free Rates (R f );January 2008–PresentDate

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Risk-free Rate (Rf)

Rf (%)

Kroll
Recommended U.S.
ERP (%)What
ChangedCurrent Guidance:
June 5, 2024 − UNTIL FURTHER NOTICE*

Normalized 20-year U.S. Treasury yield*

3.50*

5.00

ERP

June 8, 2023 − June 4, 2024*

Normalized 20-year U.S. Treasury yield*

3.50*

5.50

ERP

October 18, 2022 ‒ June 7, 2023*

Normalized 20-year U.S. Treasury yield*

3.50*

6.00

ERP

June 16, 2022 ‒ October 17, 2022*

Normalized 20-year U.S. Treasury yield*

3.50*

5.50

RfApril 7, 2022 ‒ June 15, 2022

Normalized 20-year U.S. Treasury yield

3.00

5.50

Rf

December 7, 2020 ‒ April 6, 2022

Normalized 20-year U.S. Treasury yield

2.50

5.50

ERP

June 30, 2020 − December 6, 2020

Normalized 20-year U.S. Treasury yield

2.50

6.00

Rf

March 25, 2020 − June 29, 2020

Normalized 20-year U.S. Treasury yield

3.00

6.00

ERP

December 19, 2019 − March 24, 2020

Normalized 20-year U.S. Treasury yield

3.00

5.00

ERP

September 30, 2019 − December 18, 2019

Normalized 20-year U.S. Treasury yield

3.00

5.50

Rf

December 31, 2018 − September 29, 2019

Normalized 20-year U.S. Treasury yield

3.50

5.50

ERP

September 5, 2017 − December 30, 2018

Normalized 20-year U.S. Treasury yield

3.50

5.00

ERP

November 15, 2016 − September 4, 2017

Normalized 20-year U.S. Treasury yield

3.50

5.50

Rf

January 31, 2016 − November 14, 2016

Normalized 20-year U.S. Treasury yield

4.00

5.50

ERPDecember 31, 2015

Normalized 20-year U.S. Treasury yield

4.00

5.00

December 31, 2014

Normalized 20-year U.S. Treasury yield

4.00

5.00

December 31, 2013

Normalized 20-year U.S. Treasury yield

4.00

5.00

February 28, 2013 – January 30, 2016

Normalized 20-year U.S. Treasury yield

4.00

5.00

December 31, 2012

Normalized 20-year U.S. Treasury yield

4.00

5.50

January 15, 2012 − February 27, 2013

Normalized 20-year U.S. Treasury yield

4.00

5.50

December 31, 2011

Normalized 20-year U.S. Treasury yield

4.00

6.00

September 30, 2011 − January 14, 2012

Normalized 20-year U.S. Treasury yield

4.00

6.00

ERP

July 1 2011 − September 29, 2011

Normalized 20-year U.S. Treasury yield

4.00

5.50

Rf

June 1, 2011 − June 30, 2011

Spot 20-year U.S. Treasury yield

Spot

5.50

Rf

May 1, 2011 − May 31, 2011

Normalized 20-year U.S. Treasury yield

4.00

5.50

Rf

December 31, 2010

Spot 20-year U.S. Treasury yield

Spot

5.50

December 1, 2010 − April 30, 2011

Spot 20-year U.S. Treasury yield

Spot

5.50

Rf

June 1, 2010 − November 30, 2010

Normalized 20-year U.S. Treasury yield

4.00

5.50

Rf

December 31, 2009

Spot 20-year U.S. Treasury yield

Spot

5.50

December 1, 2009 − May 31, 2010

Spot 20-year U.S. Treasury yield

Spot

5.50

ERP

June 1, 2009 − November 30, 2009

Spot 20-year U.S. Treasury yield

Spot

6.00

Rf

December 31, 2008

Normalized 20-year U.S. Treasury yield

4.50

6.00

November 1, 2008 − May 31, 2009

Normalized 20-year U.S. Treasury yield

4.50

6.00

Rf

October 27, 2008 − October 31, 2008

Spot 20-year U.S. Treasury yield

Spot

6.00

ERP

January 1, 2008 − October 26, 2008

Spot 20-year U.S. Treasury yield

Spot

5.00

Initialized

ERPERP* We recommend using the spot 20-year U.S. Treasury yield as the proxy for the risk-free rate, if the prevailing yield as of thevaluation date is higher than our recommended U.S. normalized risk-free rate of 3.5%. This guidance is effective when developing
USD-denominated discount rates as of June 16, 2022 and thereafter.
"Normalized" in this context means that in months where the risk-free rate is deemed to be abnormally low, a proxy for a longer-termsustainable risk-free rate is used.
To learn more about cost of capital issues, and to ensure that you are using the most recent Kroll's Global Cost of Capital Inputs, visit
kroll.com/cost-of-capital-resource-center.
This and other related resources can also be found in the online Cost of Capital Navigator platform. To learn more about the Cost of Capital
Navigator and other Kroll valuation and industry data products, visit kroll.com/costofcapitalnavigator.