Issume that the existing U.S. one-year interest rate is 11 percent and the Canadian one-year interest rate is 10 percent. Also assume hat interest rate parity exists. Should the forward rate of the Canadian dollar exhibit a discount or a premium? The Canadian dollar's forward rate should exhibit a if U.S. investors attempt covered interest arbitrage, what will be their return? U.S. investors would earn a return of percent using covered interest arbitrage. If Canadian investors attempt covered interest arbitrage, what will be their return? Canadian investors would earn a return of percent using covered interest arbitrage