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The 5-year US dollar interest rate is 3% and the 5-year Russian ruble interest rate is 8%. The spot exchange rate is RUB25/$ and the

The 5-year US dollar interest rate is 3% and the 5-year Russian ruble interest rate is 8%. The spot exchange rate is RUB25/$ and the 5-year forward exchange rate is RUB30/$.

Is a covered interest arbitrage profitable? Show your work. Please show me step by step. Thanks!

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