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Assume the following information: U.S. investors have $1,450,000 to invest 1-year deposit rate offered on U.S. dollars = .12 1-year deposit rate offered on Singapore

Assume the following information:

U.S. investors have $1,450,000 to invest
1-year deposit rate offered on U.S. dollars = .12
1-year deposit rate offered on Singapore dollars = 0.100
1-year forward rate of Singapore dollars = $0.412
Spot rate of Singapore dollar = $0.40

interest rate parity doesnt exist and covered interest arbitrage by U.S. investors results in a yield of _______ which is above what is possible domestically

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