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A US investor has $9,900 to invest for one year, either in the US, or in a Australian pension fund located in Perth, that pays

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A US investor has $9,900 to invest for one year, either in the US, or in a Australian pension fund located in Perth, that pays 4.1% interest. Currently, $1 US buys 1.75 Australian dollars, and the investor believes the future rate will be Et+1=1.69. The investor claims to be exactly indifferent between the two options, implying that the US interest rate must be 5.9% 7.8% 8.9% 10.4%

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