Li continues, “The plan’s benefit is defined as a percentage of each year’s compensation subject to a fixed 4% annual interest rate credit accumulating each year to a total lump sum. Pure, which has sufficient cash flow, has a policy of contributing an amount sufficient to cover accumulated vested plan benefits annually into a corporate trust. The plan’s trust portfolio is entirely composed of fixed-income securities. The employee gradually accrues rights to the full amount of the benefit from the beginning of Employment Years 3 through 6. Upon separation from employment, the employee may receive distribution of the entire vested benefit or leave it in the plan to accumulate further. Those who do not remain employed long enough to become fully vested forfeit some or all of the benefit. Pure uses these forfeited funds to reduce its future contributions to the plan’s trust. A majority of the participating technical employees remain at least five years, and we lose only about 20% of our staff within the first four years. The average tenure of our technical staff is 5.5 years. Exhibit 2 shows some of the characteristics of the portfoliobacking the benefit.”
Exhibit 2
Portfolio Characteristics
Market value of plan assets (in USD)
5,820,300
Current value of vested benefits (in USD)
5,675,000
Portfolio effective duration
4.95
Portfolio current yield
2.95%
Annualized portfolio return inception to date
4.00%
Q. Based on Li’s description of the deferred compensation plan and the data in Exhibit 2, the funding status of the plan is most likely explained by the difference between the:
- portfolio’s current yield and the return inception to date.
- average employee tenure and the portfolio’s effective duration.
- amount of the contributions and the growth rate of the vested benefits.
答案C
文中段落的意思我都明天，问题1.Current value of vested benefits 就是PBO吧？
2 A选项的portfolio’s current yield 和 the return inception to date什么区别，怎么感觉是一个东西
3.B选项 average employee tenure 和 the portfolio’s effective duration根本没关系吧，资产的duration应该和负责的duration（即员工平均还有多少年退休）匹配
4.C选项 amount of the contributions 是金额， growth rate of the vested benefits是百分比，这俩怎么能一起比呢
