Assume the following information:
U.S. investors have $1,200,000 to invest
1-year deposit rate offered on U.S. dollars = .12
1-year deposit rate offered on Singapore dollars = 0.100
1-year forward rate of Singapore dollars = $0.412
Spot rate of Singapore dollar = $0.40
Interest rate parity doesn’t exist and covered interest arbitrage by U.S. investors results in a yield of _______ which is above what is possible domestically.