rate 1-6: Borrowing from US and Lending in NZ => Today Borrow: $ for one month with Principal: $ Change to NZ$: = NZ$ Lend NZ$ in NZ for one month with rate Initial investment: NZ$ => After one month Payment: Principal: $ Interest PMT: $ Total Payment: $ Receive: After one month: NZ$ Change back to $: $ Profit/Loss: $ . - Spot rate: $0.5/NZS Expectation: No changes in exchange rates You can borrow either $5.000 or NZS 10.000 Given interest rates Lending rate USS 6.7235 APR) NZS 6.48% APR Borrowing rate 72%(APR) 6.96%(APR)