Assume the following information:

	Quoted Price
Spot rate of Singapore dollar	$.75
90day forward rate of Singapore dollar	$.74
90day Singapore interest rate	4.5%
90day U.S. interest rate	2.5%

Given this information, what would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage? (Assume the investor invests $1,000,000.)

What market forces would occur to eliminate any further possibilities of covered interest arbitrage?

Please show detailed calculations.