Assume the following information: British pound spot rate = $1.71 British pound one-year forward rate = $1.69 British one-year interest rate = 8% U.S. one-year interest rate = 5% a. Explain how U.S. investors could use covered interest arbitrage to lock in a higher yield than 5%. What would be their net gain (per Dollar) from doing so? b. If a large number of investors undertook this transaction, explain how the spot and forward rates of the pound would change as covered interest arbitrage occurs