Question 28 (3.33 points) Using the information from the above two questions, does Interest Rate Parity hold under the current market condition? What is the 1-year forward rate of Singapore dollars that makes covered interest arbitrage infeasible? (Rounded the answer to 3 decimal points) O No. $0.509 No, $0.491 Yes. $0.512 No. $0.519 Yes. $0.491 Question 29 (3.33 points) Which of the following is/are false regarding the movement of the cross exchange MacBook Pro Question 26 (3.33 points) Saved Assume the following information: U.S. investors have $1,000,000 to invest: 1-year deposit rate offered on U.S. dollars 1-year deposit rate offered on Singapore dollars 1-year forward rate of Singapore dollars Spot rate of Singapore dollar 12% 10% $.512 $.500 If U.S. investors use covered interest arbitrage for a 1-year investment, what will be the amount of U.S. dollars U.S. investors will have after one year? $1,126,400.00 $2,148,437.50 $1,074,218.75 $1,133,000.00 Question 27 (3.33 points) MacBook Pro Question 27 (3.33 points) Continued from the above Question, does the cover interest arbitrage work for U.S. investors? Yes, the covered interest arbitrage works for U.S. investors because the yield is higher than 12% Yes, the covered interest arbitrage works for U.S. investors because the yield is higher than 10%. No, the covered interest arbitrage does not work for U.S. investors because the yield is lower than 10%. No, the covered interest arbitrage does not work for U.S. investors because the yield is lower than 12%. Question 28 (3.33 points) Using the information from the above two questions, does Interest Rate Parity hold under the current market condition? What is the 1-year forward rate of Singapore dollars that makes covered interest arbitrage infeasible? (Rounded the answer to 3 MacBook Pro Question 26 (3.33 points) Saved Assume the following information: U.S. investors have $1,000,000 to invest: 1-year deposit rate offered on U.S. dollars 1-year deposit rate offered on Singapore dollars 1-year forward rate of Singapore dollars Spot rate of Singapore dollar - 12% 10% $.512 $.500 IF U.S. Investors use covered interest arbitrage for a 1-year investment, what will be the amount of U.S. dollars U.S. investors will have after one year? $1,126,400.00 $2,148,437.50 $1,074,218.75 $1,133,000.00 N Question 27 (3.33 points) Continued from the above Question, does the cover interest arbitrage work for U.S. investors? Yes, the covered interest arbitrage works for U.S. investors because the yield is higher than 12% Yes, the covered interest arbitrage works for U.S. investors because the yield is higher than 10% No, the covered interest arbitrage does not work for U.S. investors because the yield is lower than 10%. No, the covered interest arbitrage does not work for U.S. investors because the yield is lower than 12%