What is the return from covered interest arbitrage by a us, Financial Management

What is the return from covered interest arbitrage by a us

Let's 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 on New Zealand dollars = 0.085

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

Given the information in this scenario, what is the return from covered interest arbitrage by a U.S. investors?

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