Forecasting Based on PPP versus the Forward Rate You believe that the Singapore dollar$$s exchange rate movements are mostly attributed to purchasing power parity. Today, the nominal annual interest rate in Singapore is $18$ percent. The nominal annual interest rate in the United States is $3$ percent. You expect that annual inflation will be about $4$ percent in Singapore and $1$ percent in the United States. Assume that interest rate parity holds. Today the spot rate of the Singapore dollar is $$\mathrm{.}63.$ Do you think the $1-$year forward rate would underestimate, overestimate, or be an unbiased estimate of the future spot rate in $1$ year? Explain