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Growth stocks are penalized by higher interest rates as their earnings are further in the future. Questions on exactly how much they should be penalized:

1. What interest rate do professional investment firms used to calculate the the present value of future earnings. Is it the nominal interest rate or the real rate adjusted for inflation?
2. How many years out do the professional investors go out? 5, 10, 30?
3. What bond or other instrument do professional investors use to set their interest rates. Is it treasuries or corporate bonds or something else?
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