How would very low interest rates affect the funding position of DB plans? Very high interest rates?

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How would very low interest rates affect the funding position of DB plans? Very high interest rates? Why does the very high concentration of DB plan assets in equities contribute to swings in the funding status of such plans?

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Financial Markets Banking And Monetary Policy

ISBN: 9781118872239

1st Edition

Authors: Thomas D. Simpson

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Question Posted: Feb 02, 2024 09:34 AM

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How would very low interest rates affect the funding position of DB plans? Very high interest rates?

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DB Defined Benefit plan refers to a type of pension plan in which an employersponsor promises a specified pension payment lumpsum or combination there...View the full answer

Financial Markets Banking And Monetary Policy

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