Assume the following information:

$1-$year deposit rate offered by U$.$S$.$ banks $=12\%$

$1-$year deposit rate offered on Swiss francs $=10\%$

$1-$year forward rate of Swiss francs $=$ $$\mathrm{.}62$

Spot rate of Swiss franc $=$ $$\mathrm{.}60$ Question $1)$ A Swiss investor have Swiss francs $($CHF$)1,000,000$ to execute covered interest arbitrage $($i$.$e$.,$ convert CHF into US$$,$ invest in the U$.$S$.,$ and use forward contracts to hedge foreign exchange rate risk$).$ What is the yield to the Swiss investor who conducts covered interest arbitrage? Can the Swiss investor earn a higher return than investing at home $($i$.$e$.,$ Switzerland$)?$