Assume the following information:
You have $ 300,000 to invest.
Current spot rate of Chilean peso (CLP) = $0.00350
90-day forward rate of Chilean peso = $0.00356
90-day interest rate in U.S. is = 3.7%
90-day interest rate in Chile = 4.0%
If covered interest rate arbitrage is used for a 90-day investment, what would be the yield (percentage return) to a U.S. investor?