Intro

You have $22,000 to invest and observe the following interest rates and exchange rates:

Annual interest rates	Deposit rate	Loan rate
Dollar	3.4%	4.1%
Ruble	7.6%	8.5%
Exchange rates	Bid	Ask
Ruble spot	$0.012	$0.013
Ruble 1-year forward	$0.014	$0.015

Attempt 1/6 for 10 pts.

Part 1

What is your risk-free rate of return (yield) from exploiting the higher interest rate in Russia?