A B 1 Given the data below, what would be the yield to a U.S. investor using 2 covered interest arbitrage for USD$ 1M? What market forces would 3 occur to eliminate any further possibilities of covered interest 4 arbitrage? 5 6 7 Singapore Dollar (S$) spot rate 0.7500 8 S$ 90-day forward rate 0.7400 9 S$ 90-day interest rate 4.50% 10 USD 90-day interest rate 2.50% 11 USD investment 1,000,000 12 13 USD$ 1M in S$ 14 Value of S$ in 90 days 15 Translate back to USD in 90 days 16 90 day yield on USD$ 1M 17 18 19 20 21 22 23 24