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Assume the following information (rates are actual 90-day interest rates, not annualized): Spot rate of Canadian dollar $0.900 90-day forward rate of Canadian $0.890 dollar

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Assume the following information (rates are actual 90-day interest rates, not annualized): Spot rate of Canadian dollar $0.900 90-day forward rate of Canadian $0.890 dollar 90-day Canadian interest rate 3.50% 90-day U.S. interest rate 2.50% Given this information, the yield (percentage return) to a U.S. investor who used covered interest arbitrage would be % (assume the investor invests $1 million). The yield (percentage return) to a Canadian investor who used covered interest arbitrage would be %. ... ge IT ASUS VivoBook

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