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Assume the following information:
Given the information in this question, the return from covered interest arbitrage by U.S. investors with $500,000 to invest is ____ percent.
Current spot rate of New Zealand dollar
=$) 41
Forecasted spot rate of New Zealand dollar 1 year from now
=$) 43
One-year forward rate of the New Zealand dollar
=$) 42
Annual interest rate on New Zealand dollars
=8%
Annual interest rate on U.S. dollars
=9%
Identified Regulation
A form of motivation where actions are taken in alignment with one's values and beliefs, even if they are not inherently enjoyable.
Intrinsic Motivation
A form of motivation driven by an interest or enjoyment in the task itself, rather than relying on external pressures or rewards.
Introjected Regulation
A form of internal motivation where actions are driven by internal pressures or the desire to avoid guilt rather than personal value or enjoyment.
Gold Stars
Symbols often used as a form of reward or recognition for achievement, typically in educational settings.
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