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Assume the following information about the U.S. and New Zealand: U.S

Assume the following information about the U.S. and New Zealand:

U.S . N.Z.

Inflation Rate 1.0% 3.0%

Interest Rate 5.0% 8.0%

NZ Spot NZ1 = $0.6204 According to the International Fisher Effect, what is the expected spot rate of the New Zealand dollar in one year? Round your answer to four decimals and no currency signs.

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