Question: Hi, Could you please help me answer the questions below? I need the correct answer, and if possible, a brief explanation. Thanks very much :)

Hi,

Could you please help me answer the questions below? I need the correct answer, and if possible, a brief explanation. Thanks very much :)

1.According to the international Fisher effect, if an investor purchases a five-year U.S. bond that has an annual interest rate of 3% rather than a comparable British government bond that has an annual interest rate of 2%, then the investor must be expecting the _______ to _______at a rate of at least 1% per year over the next 5 years.

a)British pound; depreciate

b)U.S. dollar; depreciate

c)British pound; appreciate

d)U.S. dollar; appreciate

2.What is the difference between Uncovered Interest Rate Parity (UIRP) and Covered Interest Rate Parity (CIRP)?

3.Is there a difference between The Fisher effect, and the (INTERNATIONAL) Fisher effect?

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