The Thai one-year interest rate is 10 percent, while the U.S. one-year interest rate is 4 percent. Assume that interest rate parity exists. If a U.S.-based MNC uses the forward rate to forecast the exchange rate of the Thai baht in one year, the expected effective yield from investing in a one-year deposit in Thailand is:

1. 14 percent.

2. 10 percent.

3. 4 percent.

4. 6 percent.