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help!! interest arbitrage 1.: Covered interest arbitrage. Assume the following information:...

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Finance

help!! interest arbitrage
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1.: Covered interest arbitrage. Assume the following information: Current spot rate of New Zealand dollar Forward rate of New Zealand dollar for 360 -day (1 year) delivery =$0.43 Annual interest rate on New Zealand dollars Annual interest rate on U.S. dollars =8% =9% a) Given the information in this question, what is the return, inverms of dollars, on the domestic (\$) deposit? b) What is the retum, in terms of dollars, on the covered foreign (NZS) deposit

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