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Assume the following information Current spot rate of New Zealand dollar = $0.41 Forecasted spot rate of New Zealand dollar 1 year from now =
Assume the following information
Current spot rate of New Zealand dollar | = | $0.41 |
Forecasted spot rate of New Zealand dollar 1 year from now | = | $0.43 |
One-year forward rate of the New Zealand dollar | = | $0.42 |
Annual interest rate on New Zealand dollars | = | 0.075 |
Annual interest rate on U.S. dollars | = | .09 |
Given the information in this question, the return from covered interest arbitrage by U.S. investors with $479,000 to invest is about ________.
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