Below is some financial data between the United States and New Zealand. United States New Zealand 1-Year Treasury yield 4.4% 5.4% Rate of inflation 2.0% 2.977% The current spot exchange rate is 1.8288 New Zealand dollars (NZD) per 1 USD. The 1-year forward exchange rate is 1.8625 NZD per USD. (a) Assume that absolute purchasing power parity holds. Product A currently costs 100 NZD. Determine what the identical Product A should cost in the United States (1 Mark). (b) Determine if interest rate parity between the two countries is holding (show your calculations). (2 Marks) (c) The Treasurer of Wonderful Informatika Ltd has 10 million USD to invest for one year. He is tempted by the higher rate of interest in New Zealand. Is investing in one year risk-free New Zealand government Treasury bills the best option for the Treasurer? No calculations are required, but you must briefly explain your answer. (2 Marks)