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Suppose you conduct currency carry trade by borrowing $1,000,000 at the stant of each year and investing in the New Zealand doliat for one year.

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Suppose you conduct currency carry trade by borrowing $1,000,000 at the stant of each year and investing in the New Zealand doliat for one year. One-year interest rates and the exchange rate between the U.S. dollar (\$) and New Zeaiand doliar (NZS) are provided below for the period 2000-2009. Note that interest rates are-one-year interbank rates on January 1 each year, ond that the exchange fate is the amount of New Zealand dollar per U.S. dollor on December 31 each year. The exchange rate was NZ\$1.908g/S on January 1 , 2000 . Filf out columns 47 and compute the total dolar profit from this carty trade over the 10 -year period Aiso, assess the validity of uncovered interest rate parity based on your solution of this problem. You are encouraged to uste the Excel spreadsheet software to torkle this

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