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a original answer please 30. Testing IRP The one-year interest rate in Singa- pore is 11 percent. The one-year interest rate in the United States

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30. Testing IRP The one-year interest rate in Singa- pore is 11 percent. The one-year interest rate in the United States is 6 percent. The spot rate of the Singa- pore dollar (S$) is $.50 and the forward rate of the S$ is $.46. Assume zero transaction costs. a. Does interest rate parity exist? b. Can a U.S. firm benefit from investing funds in Singapore using covered interest arbitrage

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