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Assume the following information: Spot rate today of Swiss franc $0.90 1-year forward rate as of today for Swiss franc $0.93 Expected spot rate 1

Assume the following information:

Spot rate today of Swiss franc $0.90

1-year forward rate as of today for Swiss franc $0.93

Expected spot rate 1 year from now $0.97

Rate on 1-year deposits denominated in Swiss francs 4%

Rate on 1-year deposits denominated in U.S. dollars 7%

From the perspective of U.S. investors with $1,000,000, calculate the percentage rate of return that covered interest arbitrage would yield.

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