Question: issues one - year NZ CDs at a 5 percent annual interest rate to finance a 4 . 5 million ( Chinese Yuan ) investment

issues one-year NZ CDs at a 5 percent annual interest rate to finance a 4.5 million (Chinese Yuan) investment in two-year, fixed-rate Chinese bonds selling at par and paying 7 percent annually. You expect to liquidate your position in one year. The current spot exchange rate is CNY 4.5 per

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