Please give me the calculation and the answer, thank you!!!!

21 (5 points) Assume the following and address items A-E. Show your work for credit. . In London, interest paid on pounds is 1.11% In New York, interest paid on dollars is 3.27%. The spot rate is $1.5512/f The one-year forward rate is $1.5529/f The spread on borrowing & lending rates is zero The bid-ask spread is zero The arbitrageur has no money of his own but can borrow up to 1,000,000 of any local currency (i.e. use 1,000,000 as the start of your computations) A. What is the covered yield on pounds (if the investor borrows dollars in New York)? B. What is the covered yield on dollars (if the investor borrows pounds in London)? C. Should the arbitrageur borrow pounds in London or borrow dollars in New York? In which country should the arbitrageur invest? D. Identify the steps and timing of this covered interest arbitrage, and compute the amounts involved at each stage (including the gain at the end). E. The ROA is very low (around 2%). How does an arbitrageur create acceptable ROE (Return on Equity) from covered interest arbitrage