onsderably more complex than that in ONeste case. Identify and discuss FIVE factors that add complexity Total: 25 marks] QUESTION THREE a) One year ago, the spot exchange rate between Japanese yen and Swiss franc was Y160/SFr. Today the spot rate is Y156/SFr. Inflation during the year was 2 percent in Japan and 3 percent in Switzerland. Required: i) What was the percentage change in the nominal value of the Swiss Franc? (3 marks) ii) 5 One year ago, what nominal exchange would you have predicted for today based or What is the percentage change in the real exchange of Y/SFr during the year? The current spot exchange rate is 190/$+The prime rate in the United States is the difference in inflation rates? (5 marks) ili) (5 marks) percent. Assume IRP is holding. onsderably more complex than that in ONeste case. Identify and discuss FIVE factors that add complexity Total: 25 marks] QUESTION THREE a) One year ago, the spot exchange rate between Japanese yen and Swiss franc was Y160/SFr. Today the spot rate is Y156/SFr. Inflation during the year was 2 percent in Japan and 3 percent in Switzerland. Required: i) What was the percentage change in the nominal value of the Swiss Franc? (3 marks) ii) 5 One year ago, what nominal exchange would you have predicted for today based or What is the percentage change in the real exchange of Y/SFr during the year? The current spot exchange rate is 190/$+The prime rate in the United States is the difference in inflation rates? (5 marks) ili) (5 marks) percent. Assume IRP is holding