Riskfree Rate in Practice. ï® The riskfree rate is the rate on a zero coupon government bond matching the. time horizon of the cash ï¬ow being analyzed. ï® Theoretically, this translates into using different riskfree rates for each cash. ï¬ow - the 1 year zero coupon rate for the cash ï¬ow in year 1, the 2-year zero. coupon rate for the cash ï¬ow in year 2 ... ï® Practically speaking, if there is substantial uncertainty about expected cash.