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CPM theory assumes all of the following, EXCEPT:
Spot Rates
Spot Rates refer to the current interest rates available for immediate transactions in the bond market, influencing the pricing of the financial securities.
Interest Rate Parity
A financial theory stating that the difference in interest rates between two countries is equal to the difference between the forward and spot exchange rates of their currencies.
Nominal Risk-Free
The rate of return on an investment with no risk of financial loss, not adjusted for inflation.
Export Development Canada
A Canadian government agency that provides financing, insurance, and bonding services to Canadian exporters and investors.
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