CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

A higher discount rate:

A. increases the VBO.
B. decreases the VBO.
C. does not affect the VBO.
Correct Answer: B

User Contributed Comments 3

User Comment
HenryQ Asset return has nothing to do with pension obligations. Think of them as on the asset side of B/S and separated from liabilities.
rlabog in this case why is the answer "B" - decreases the vested benefit obligation?
davidt876 ecause you're discounting FV of liabilities to PV
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