Difference covered interest parity and uncovered interest parity?

Covered arbitrage refers to when an investor buys a certain currency at its spot rate (i.e. $100,000 @ US$1 = £1.05) but then also purchases/enters into contract for a forward rate investment back...

forward/discount rate premium

The interest parity equilibrium holds when we make a loss.

In freely traded (not restricted) currency pairs, Covered Interest Parity absolutely drives the forward price. This is through arbitrage In restricted currencies it may or may not drive the forward...

Capitalized interest is now part of the principle. Accrued interest is separate now, but can be capitalized later if not paid.