1 - Covered Interest Arbitrage. Assume the following information:

Quoted Price

Spot rate (/$) 118.60

180-day forward rate (/$) 117.80

1-year Japanese yen interest rate 3.40%

1-year US dollar interest rate 4.80%

Given this information, what would be the semiannual yield (percentage return) of a Tokyo investor who used covered interest arbitrage by investing in the U.S? (Assume the investor has /593,000,000 of arbitrage funds available) What would be the potential profit from doing coverage interest arbitrage?

Please help me solving this problem from international Finance class which is about chapter 7, doit step by step please