Pawn Company's 2006 Annual Report Included the Following Information About

Pawn Company's 2006 Annual Report included the following information about its defined benefit pension plan: $$\begin{array}{l}\text { Plan Status: December 31, } 2006\\\begin{array} { | l | r | } \hline \text { Accumulated Benefit Obligation } & \$ 20 \text { Million } \\\hline \text { Projected Benefit Obligation } & \$ 25 \text { Million } \\\hline \text { Plan Assets (at fair value) } & \$ 35 \text { Million } \\\hline \text { Unrecognized transition asset } & \$ 11 \text { Million } \\\hline \text { Unrecognized actuarial losses } & \$ 1 \text { Million } \\\hline & \\\hline \text { Service cost } & \$ 800,000 \\\hline \text { Interest cost } & 2,100,000 \\\hline \text { Actual return on plan assets } & ( 4,000,000 ) \\\hline \text { Assumptions: } & \\\hline \text { discount rate } & 9 \% \\\hline \text { return on assets } & 10 \% \\\hline \text { compensation growth } & 6\% \\\hline\end{array}\end{array}$$
a. If Pawn had increased its discount rate to 10% in 2006 what would be the effect on the accumulated benefit obligation, the projected benefit obligation, service cost and interest cost?
b. Estimate the interest cost for 2007 under the existing plan.