Question: During a certain year, interest rates fall by 200 basis points (2%), and equity prices are flat. Discuss the effect of this on a defined

  1. During a certain year, interest rates fall by 200 basis points (2%), and equity prices are flat. Discuss the effect of this on a defined benefit pension plan that is 60% invested in equities and 40% invested in bonds.

PLEASE SHOW ALL WORK, NO HANDWRITING. THANK YOU.

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