Is a "defined benefit" pension the equivalent to a like amount in bonds as far as allocation in a portfolio ?

Question

In other words, if the pension results in $10,000/yr, isn't that the same as having $200,000 worth of bonds that pay 5%/ yr ?

Answer 1

Sort of. Depending on the bonds being callable or not, bond prices will fluctuate.

Answer 2

More like an annuity.

Answer 3

No. Not really.  Defined benefits plans can be quirky.  See the following discussion.

http://www.investopedia.com/terms/d/defi...