The spot and 1-year forward rates on the New Zealand dollar are currently NZD1.485 = USD1 and
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The spot and 1-year forward rates on the New Zealand dollar are currently NZD1.485 = USD1 and NZD1.455 = USD1, respectively. If the expectations theory of forward rates is correct, would you expect the New Zealand dollar to appreciate or depreciate over the coming year?
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Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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