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What three factors regarding differences in interest rates on similar bonds can prevent the interest parity condition from holding?
Confidence Level
The probability or likelihood, expressed as a percentage, that a specified interval will contain the true population parameter.
Mean Width
An average measure of the width of a set of objects or figures, calculated by summing the widths and dividing by the number of objects.
Confidence Interval
A range of values derived from sample data that likely contains the true value of an unknown population parameter.
Sample Size
The number of observations or units included in a sample, which represents a portion of the population being studied.
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