Question: Given the information below and assuming efficient markets in Canada and the U.S, answer the following questions: a. What do the financial markets suggest for

Given the information below and assuming efficient markets in Canada and the U.S, answer the following questions: a. What do the financial markets suggest for inflation in Canada next year? b. Estimate today's one-year forward exchange rate between the US dollar and Canadian dollar. Assumptions Canada USA Spot exchange rate (CS/USS) One-year Treasury bill rate Expected inflation rate 1.3264 3.600% Unknown 1.3264 4,200%

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