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Today, the one-year U.S. interest rate is 2 percent, while the one-year interest rate in Argentina is 14 percent. The spot rate of the Argentine

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Today, the one-year U.S. interest rate is 2 percent, while the one-year interest rate in Argentina is 14 percent. The spot rate of the Argentine peso (AP) is $0.50. The one-year forward rate of the AP exhibits a 14% discount. Determine the vield (percentage retrun on investment) to an investor from Argentina who engages in covered interest arbitrage. Do not round intermediate calculations, Round your answer to two decimal places

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