Question
New Zealand Citizen Bank just made a one-year NZ$10 million loan that pays 10 percent interest annually. The loan was funded with an Australian dollar-denominated
New Zealand Citizen Bank just made a one-year NZ$10 million loan that pays 10 percent interest annually. The loan was funded with an Australian dollar-denominated
(A$) one-year deposit at an annual rate of 6 percent. The current spot rate is A$0.9500/NZ$1.
How far can the A$/NZ$ appreciate before the transaction will result in a loss for New Zealand Citizen Bank?
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Financial Liberalization And Bank Performance Empirical Evidence From Pakistan
Authors: Ghulam Shabbir Khan Niazi, Abid Aman
1st Edition
3639218220, 978-3639218220
