Question 12 (3.7 points) Assume the following information: US investors have $1.000.000 to invest 1-year deposit rate offered on US dollars 1-year deposit rate offered on Singapore dollars 1-year forward rate of Singapore dollars Spot rate of Singapore dollar 10% $.412 $.400 If U.S. investors use covered interest arbitrage for a 1-year investment, what will be the amount of U.S. dollars U.S. investors will have after one year? $2,750,000.00 $1.153.600 00 $2 800 000.00 $1,133,000.00 Question 13 (3.7 points) Continued from the above Question, does the cover interest arbitrage work for U.S. investors? Yes, the covered interest arbitrage works for U.S. investors because the yield is higher than 10% No, the covered interest arbitrage does not work for US, investors because the yield is lower than 12%. Yes, the covered interest arbitrage works for U.S. investors because the yield is higher than 12%. No, the covered interest arbitrage does not work for U.S. investors because the yield is lower than 10%. Question 14 (3.7 points) Using the information from the above question, does Interest Rate Parity hold under the current market condition? What is the 1-year forward rate of Singapore dollars that makes covered interest arbitrage infeasible? (Rounded the answer to 3 decimal points) Yes. $0.412 it cannot be determined. No $0.393 No. $0.407