Consider the following exchange rates on a particular day: Spot exchange rate: USD1.4 per Euro Forward Exchange rate 1 year: USD 1.33 per Euro The following annual interest rate also exist on that day: Euro Denominated Bonds: 10% USD Denominated Bonds: 14% If you are an investor facing this rates, is there a possibility for arbitrage? If so, carefully explain how you would make a profit. More specifically, explain which bond you would be selling short (borrowing) and which bond would you be buying. What would be your return on performing arbitrage