Suppose you observe the following spot and forward exchange rates between the U$.$S$.$ dollar $($$$)$ and the Canadian dollar $($C$$)$:

One$-$Year Forward

$\backslash$table$[[,$Spot Exchange Rate,Exchange Rate$],[$Canadian dollar $($U$.$S$.$ dollar$/$Canadian dollar$),0\mathrm{.}8932,0\mathrm{.}9133]]$

The current one$-$year interest rate on U$.$S$.$ Treasury securities is $6\mathrm{.}35\%.$ If interest rate parity holds, what is the expected yield on one$-$year Canadian securities of equal risk?

$3\mathrm{.}41\%$

$4\mathrm{.}41\%$

$4\mathrm{.}01\%$

$3\mathrm{.}81\%$

Which of the following statements is implied by interest rate parity theory?

A product bought in one country should have the same price in other countries, adjusted for exchange rate.

Interest rates in all countries should be the same.

An investment in one's home country should have the same return as a similar investment in a foreign country.

Interest rates in all countries with the same political risk should be the same.