Suppose that the U$.$S$.$ dollar$-$pound sterling spot exchange rate equals $$\frac{1\mathrm{.}60}{},$ while the $360-$day forward rate is $$\frac{1\mathrm{.}64}{}.$ The yield on a one$-$year U$.$S$.$ treasury bill is $9$ percent and that on a one$-$year UK treasury bill is $8$ percent. Calculate the expected returns on the U$.$S$.$ treasury bill and the U$.$K$.$ treasury bill or the covered interest differential. On the basis of this result, which country would you expect to have capital inflows and which to have capital outflows?