What is your personal discount rate or rate of preferences? I.e. how much would you pay for a promise of $1000 to be received one year from now? Would you discount it by 10%, 5%, etc? and why ?
Discount rate, by convention, is the current interest rate.
The current rate 2.63%, so that should be the person's discount rate.
Why is this? Because if someone's discount rate is not 2.63%, then there ...