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Guest DBtech

FAS87 ASC715 discount rates and Moody's Rates

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Guest DBtech

I believe the SEC has stated that corporate pension plans can benchmark from Moody's Aa bond yields in setting discount rates under FAS 87. The Moody’s Aa rate was 6.01% as of 12/31/2003. I think the rate was 5.84% as of 11/30/2004. Does anyone know when or where the 12/31/2004 Aa rate will be published? I do have sites for the Aaa and Ba rates, but not the Aa.

Thanks.

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Guest DBtech

Thanks, pax. If the Aa long-term corporate rate was 6.01% as of 12/31/03, that means a decline of 35 basis points over the year. This would imply the SEC would be looking for at least a quarter percent decline in the FAS 87 discount rate for 2005. Right?

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Maybe. What really counts is whether the rate is reasonable now, not whether it is consistent with last year's rate (which may not have been reasonable at the time).

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January 31, 2005

Moody’s Bond rates

Utilities Industrial Corporate

Aaa NA* 5.22 5.22

Aa 5.58 5.36 5.47

A 5.65 5.44 5.55

Baa 5.82 5.96 5.89

Avg 5.68 5.50 5.59

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 3.41

Medium-Term (5-10 yrs): 3.89

Long-Term (10+ yrs): 4.52

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 255.6

Yield: 3.93

New Dividend: 10.03

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February 28, 2005:

Moody’s Bond rates

Utilities Industrial Corporate

Aaa NA, 5.35, 5.35

Aa 5.69, 5.48, 5.59

A 5.76, 5.56, 5.66

Baa 5.91, 5.98, 5.95

Avg 5.79, 5.59, 5.69

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 3.85

Medium-Term (5-10 yrs): 4.25

Long-Term (10+ yrs): 4.70

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 260.8

Yield: 3.89

New Dividend: 10.13

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March 31, 2005

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.40 5.40

Aa 5.79 5.42 5.61

A 5.75 5.62 5.69

Baa 6.04 6.23 6.14

Avg 5.86 5.67 5.77

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 4.03

Medium-Term (5-10 yrs): 4.39

Long-Term (10+ yrs): 4.81

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 261.0

Yield: 3.86

New Dividend: 10.08

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April 29, 2005 (Friday)

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.21 5.21

Aa 5.43 5.18 5.31

A 5.54 5.44 5.49

Baa 5.86 6.07 5.97

Avg 5.61 5.48 5.55

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 3.78

Medium-Term (5-10 yrs): 4.07

Long-Term (10+ yrs): 4.53

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 269.6

Yield: 3.76

New Dividend: 10.14

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May 31, 2005

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.02 5.02

Aa 5.25 5.05 5.15

A 5.41 5.32 5.37

Baa 5.75 6.05 5.90

Avg 5.47 5.36 5.42

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 3.66

Medium-Term (5-10 yrs): 3.88

Long-Term (10+ yrs): 4.32

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 267.1

Yield: 3.78

New Dividend: 10.10

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Just in case you had not noticed, on June 6, 2005, the Moody's Aa rates dropped below 5%:

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 4.92 4.92

Aa 4.99 4.95 4.97

A 5.35 5.21 5.28

Baa 5.63 5.93 5.78

Avg 5.32 5.25 5.29

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 3.64

Medium-Term (5-10 yrs): 3.83

Long-Term (10+ yrs): 4.25

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 270.1

Yield: 3.74

New Dividend: 10.10

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That link has been included in several prior posts, but it is not necessarily updated as soon as possible. It also shows only one month-end rate.

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The SOA page doesn't appear to have been updated since 10/31/05. Any idea why?

Does anyone have the 12/1/05 rate?

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Guest DBtech

It was updated Monday 12/12/05:

11/30/2005 5.53

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11/30/05

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.42 5.42

Aa 5.57 5.48 5.53

A 5.85 5.77 5.81

Baa 6.18 6.57 6.38

Avg 5.87 5.81 5.84

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 4.40

Medium-Term (5-10 yrs): 4.49

Long-Term (10+ yrs): 4.76

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 281.7

Yield: 3.81

New Dividend: 10.72

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12/30/2005

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.26 5.26

Aa 5.46 5.35 5.41

A 5.69 5.78 5.74

Baa 6.03 6.38 6.21

Avg 5.73 5.69 5.71

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 4.36

Medium-Term (5-10 yrs): 4.38

Long-Term (10+ yrs): 4.58

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 285.9

Yield: 3.75

New Dividend: 10.72

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01/31/2006

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.39 5.39

Aa 5.59 5.50 5.55

A 5.84 5.92 5.88

Baa 6.15 6.46 6.31

Avg 5.86 5.82 5.84

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 4.48

Medium-Term (5-10 yrs): 4.53

Long-Term (10+ yrs): 4.71

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 293.0

Yield: 3.69

New Dividend: 10.81

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March 31, 2006

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.67 5.67

Aa 5.87 5.81 5.84

A 6.14 6.13 6.14

Baa 6.40 6.70 6.55

Avg 6.14 6.08 6.11

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 4.80

Medium-Term (5-10 yrs): 4.86

Long-Term (10+ yrs): 5.04

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 277.5

Yield: 3.82

New Dividend: 10.60

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April 28, 2006

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.95 5.95

Aa 6.12 608 6.10

A 6.37 6.33 6.35

Baa 6.61 6.86 6.74

Avg 6.37 6.31 6.34

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 4.87

Medium-Term (5-10 yrs): 5.00

Long-Term (10+ yrs): 5.27

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 274.2

Yield: 3.84

New Dividend: 10.52

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Guest Texas_Acty

All those in favor of changing the name of this post?

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Guest DBtech

I vote to call it MOODY'S LONG-TERM CORPORATE BOND YIELD AVERAGES as of month-end

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May 31, 2006

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.95 5.95

Aa 6.21 6.11 6.16

A 6.43 6.39 6.41

Baa 6.62 6.94 6.78

Avg 6.42 6.35 6.39

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 5.00

Medium-Term (5-10 yrs): 5.09

Long-Term (10+ yrs): 5.32

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 278.4

Yield: 3.79

New Dividend: 10.56

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June 29, 2006

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.98 5.98

Aa 6.26 6.15 6.21

A 6.51 6.48 6.50

Baa 6.75 7.06 6.91

Avg 6.51 6.42 6.47

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 5.14

Medium-Term (5-10 yrs): 5.19

Long-Term (10+ yrs): 5.36

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 285.2

Yield: 3.72

New Dividend: 10.60

To the best of my knowledge, Moody's never posted any June 30, 2006 information. If you have information otherwise, please post.

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July 31, 2006

MOODY'S DAILY LONG-TERM CORPORATE BOND YIELD AVERAGES

Utilities Industrial Corporate

Aaa NA* 5.79 5.79

Aa 6.08 5.95 6.02

A 6.29 6.27 6.28

Baa 6.52 6.82 6.67

Avg 6.30 6.21 6.26

MOODY'S DAILY TREASURY YIELD AVERAGES

Short-Term (3-5 yrs): 4.89

Medium-Term (5-10 yrs): 4.94

Long-Term (10+ yrs): 5.14

MOODY'S DAILY PUBLIC UTILITY COMMON STOCK YIELD AVERAGES

Price: 298.3

Yield: 3.56

New Dividend: 10.61

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Here's a business idea, Pax. Maybe you should make the updated rates available on your website, and give us a link to them. Then you can drive people to your website, maybe drumming up some business. We used to be able to look rates up on the Gabriel, Roeder Smith website, but they don't update regularly like they used to.

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