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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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12/31/04 Industrial

Aaa 5.43%

Aa 5.56

A 5.66

12/31/04 Corporate

Aaa 5.43%

Aa 5.66

A 5.77

12/31/04 Utilities

Aaa n/a

Aa 5.75

A 5.88

Moodys_Rates_12312004.html

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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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).

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 4 weeks later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 1 month later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 4 weeks later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 1 month later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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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.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 6 months later...

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?

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 3 weeks later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 4 weeks later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 2 months later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 5 weeks later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 4 weeks later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 1 month later...

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.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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  • 4 weeks later...

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

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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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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