Question: A defined benefit plan has 2 5 0 employees with a majority of them under age 4 5 . The pension fund manager has collected

A defined benefit plan has 250 employees with a majority of them under age 45. The pension fund manager has collected the following data: Risk-Free Rate: 2.5% Discount rate used to compute pension obligations: 7.0% Premium to reduce future obligations: 1.5% Yield to maturity on the company 30-year bonds: 5.8% The return objective for the pension fund is closest to: Group of answer choices 5.8%.7.0%.8.5%.9.5%.

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