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4. MSU Bank believes the New Zealand dollar will depreciate over the next 6 months from NZ$2.20/USD to NZ$2.35/USD. The following 6-month interest rates apply:
4. MSU Bank believes the New Zealand dollar will depreciate over the next 6 months from NZ$2.20/USD to NZ$2.35/USD. The following 6-month interest rates apply: (the rates are periodic rates so you do not need to adjust them at all we do not need to multiply by 180/360 or anything like that) Currency Dollars New Zealand dollar (NZ$) Lending (deposit) Rate 1.5% 2.0% Borrowing Rate 1.75% 2.50% MSU Bank has the capacity to borrow either NZ$25 million or $10 million. If MSU Bank's forecast if correct, what will its U.S. dollar profit be from speculation over the 6-month period
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