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Which of the following statements comparing IRR and NPV is TRUE?
Settlement Date
The date on which a trade is finalized, and the buyer must make payment and the seller deliver the asset.
Fair Value Hedge
A type of hedge that aims to offset changes in the fair value of an asset or liability or an unrecognized firm commitment.
Forward Contract
An agreement to buy or sell an asset at a future date at a price agreed upon today, often used to hedge against price movements.
Spot Rates
The current market price at which a particular asset can be bought or sold for immediate delivery and payment.
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