Baylor Bank believes the New Zealand dollar will appreciate over the next five days from $.48 to $.50. The following annual interest rates apply:(show all steps for your solution)

Currency	Lending Rate	Borrowing Rate
Dollars	7.10%	7.50%
New Zealand dollar (NZ$)	6.80%	7.25%

Baylor Bank has the capacity to borrow either NZ$10 million or $5 million. If Baylor Bank's forecast is correct, what will its dollar profit be from speculation over the five-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)?

1.	Borrow $5 million.
2.	Convert $5 million to NZ$: ?
3.	Invest the NZ$ at an annualized rate of 6.80% over five days: ?
4.	Convert the NZ$ back to dollars: ?
5.	Repay the dollars borrowed. The repayment amount is: ?
6.	After repaying the loan, the remaining dollar profit is: ?