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Interest rate parity (IRP) is a fundamental concept in international finance that establishes a relationship between the spot exchange rate, the forward exchange rate, and the interest rates of two countries. According to IRP, the forward rate of a currency should incorporate the difference in interest rates between two countries to prevent arbitrage opportunities. If this parity condition holds, investors cannot earn a risk-free _________ ______ _____ ________ ______ ___ __________ _____ _______ _______.
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