Assume the following informationcurrent spot rate of new, Ask an Expert

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Assume the following information:

Current spot rate of New Zealand dollar = $0.41

Forecasted spot rate of New Zealand dollar 1 year from now = $0.43

One-year forward rate of the New Zealand dollar = $0.42

Annual interest rate of New Zealand dollars = 0.075

Annual interest rate on U.S. dollars = .09

Given the information in this question, the return from covered interest arbitrage by U.S. investors with $560,000 to invest is about______________

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92054662

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