Question: need help with both please. Question 20 (4 points) Suppose that the one-year interest rate is 6.62% in the United States, the spot exchange rate
Question 20 (4 points) Suppose that the one-year interest rate is 6.62% in the United States, the spot exchange rate is $1.1776/1.00, and the one-year forward exchange rate is $1.1528/1.00. Based on interest rate parity, what must the one- year interest rate be in the euro zone? 8.184% 2.151% 06.141% 11.677% 8.914% 4.375% Question 21 (4 points) Suppose that the one-year interest rate is 5.42% in the United States, the spot exchange rate is $1.3037/1.00, and the one-year forward exchange rate is $1.2665/1.00. Based on interest rate parity, what must the one- year interest rate be in the euro zone? 5.503% 11.411% 8.516% 2.412%
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