The interest on the defined benefit obligation component of pension expense

Question

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The interest on the defined benefit obligation component of pension expense reflects the rates at which pension benefits could be effectively settled, which is based on current market rates of return on high-quality fixed income investments that are consistent with the expected duration of the pension obligations. It does not reflect the incremental borrowing rate of the employer or the expected return on plan assets. The rate may be stated implicitly or explicitly when reported, but this does not determine the calculation of the rate itself.

The Interest on the Defined Benefit Obligation Component of Pension