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The one-year interest rates for the USD and the AUD are: USD = 6% and AUD=4%. Assume USD/AUD = 0.73. Say you

borrow 120,000 units of a currency at t=0 and that the spot rate does not change between t=0 and t=1, so USD/AUD = 0.73. What is your carry trade profit at t=1 in AUD?

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