Question: 11. a. What is the problem with using an actuarially assumed interest rate for valuing the liabilities of a defined benefit pension plan? b. What

11.

a. What is the problem with using an actuarially assumed interest rate for valuing the liabilities of a defined benefit pension plan?

b. What is the argument in favor of valuing the liabilities of a defined benefit pension plan using Treasury spot rates?

c. What concerns would you have with using a corporate bond index yield curve to value the liabilities of a defined benefit pension plan?

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