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5. Assume that annual interest rates in the U.S. are 1%, while interest rates in New Zealand are 5%. According to Interest Rate Parity, what

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5. Assume that annual interest rates in the U.S. are 1%, while interest rates in New Zealand are 5%. According to Interest Rate Parity, what should the forward rate premium or discount of the New Zealand dollar (NZD) be? If the NZD spot rate is $0.72, what should the one-year forward rate of the NZD be (to four decimal places)

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