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You are an actuarial for a defined benefit plan. In a given year, interest rates fall by 4 2 5 basis points ( 4 .
You are an actuarial for a defined benefit plan. In a given year, interest rates fall by basis
points and equity prices are flat. From an actuarial perspective, discuss the effect of this
scenario on a defined benefit pension plan that is invested in equities and invested in
bonds.
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