![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5IEa_IMfvY-ToMt27cemC3T9kga4lTaknSGbG4-olQY5UvSl91IxqYnFz9ncXWoB1AbZCo9UffZ3XPzjS6NPwRKgb8KJToBC86DfC56bH74611NxS1Cix39KvfFx0nNTgCwlOlqIz6eQ/s400/sm1008266_the_maze_2+Dividend+Investing+Cash+money+wealth+life.jpg)
Inherently, financial valuations are forward looking. Unfortunately, the only hard data we have is historic, interest rates included. Theoretically, the MMA rate that I use is intended to represent the MMA rate that will be earned over then next 20 years.
So how did I come up with the 4.61% that is currently being used? I use the 20-year U.S. Treasury rate to calibrate the MMA rate, which ironically was exactly 4.61% on August 1, 2008.
I don't really expect this will stop the questions and comments about my MMA Rate, but I now I have a post that I can point to to help explain what is happening.
(Photo: gerard79)
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