Please answer the following questions about defined benefit pension plans:
Definitions:
Leverage
The use of borrowed capital or debt to increase the potential return of an investment.
Debt Financing
Raising capital through the sale of bonds, bills, or notes to individuals or institutions, which must be repaid over time with interest.
Interest Tax Shield
The reduction in income taxes that results from the deductibility of interest payments.
Debt Financing
Raising capital through the borrowing of funds to be paid back at a later date, typically with interest.
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