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Quoted Price Spot rate of Canadian dollar $0.80 90 day forward rate of Canadian dollar $0.79 90 day Canadian interest rate 4% 90 day U.S.

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Spot rate of Canadian dollar $0.80 90 day forward rate of Canadian dollar $0.79 90 day Canadian interest rate 4% 90 day U.S. interest rate 2.5%

Given this information, what would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage? (Assume the investor invests $1,000,000).

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