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Assume the following information: Spot rate today of Swiss franc =$.60 1-year forward rate as of today for Swissfranc =$.63 Expected spot rate 1 year

Assume the following information:

Spot rate today of Swiss franc =$.60

1-year forward rate as of today for Swissfranc =$.63

Expected spot rate 1 year from now =$.64

Rate on 1-year deposits denominated in Swiss francs =7%

Rate on 1-year deposits denominated in U.S. dollars =9%

From the perspective of U.S. investors with $1,000,000, covered interest arbitrage would yield a rate of return of ____ percent.

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