Question: 2. Forecasting with a Forward Rate. Assume that the four-year annualized interest rate in the United States is 9 percent and the four-year annualized interest

2. Forecasting with a Forward Rate. Assume that the four-year annualized interest rate in the United States is 9 percent and the four-year annualized interest rate in Singapore is 6 percent. Assume interest rate parity holds for a four-year horizon. (a) Calculate the compound return on investments for each of the countries and (b) the four-year forward rate premium, that is, the percentage appreciation (or discount, that is, the percentage depreciation) of the Singapore dollar

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