Assume that the U$.$K$.$ one$-$year interest rate is $8$ percent, and the U$.$S$.$ one$-$year interest rate is $6$ percent. Also assume that interest rate parity $($IRP$)$ exists. Answer questions $14-16\mathrm{.}9.$ Should the forward rate of the Pound exhibit a discount or a premium?A$)$ PremiumB$)$ DiscountC$)$ UncertainD$)$ None of the above$10.$ If U$.$S$.$ investors attempt to engage in covered interest arbitrage, what will be their return?A$)2\%$B$)6\%$C$)14\%$ D$)8\%$E$)$ None of the above$11.$ If U$.$K$.$ investors attempt to engage in covered interest arbitrage, what will be their return?A$)2\%$B$)8\%$C$)6\%$ D$)14\%$E$)$ None of the above