Q1.1 ) Refer to the information below.

Using 2000 as the year for comparison, what was the PPP-implied exchange rate at the end of 2013 (Indian rupee per U.S. dollar)?

Your answer: --------------------------Rupee/$ (rupee per dollar).

(Do NOT include $, or words in your answer. Round your answer to FOUR decimal places.)

Q 1.2)

Assume that Credit Suisse, a world leading financial institution headquartered in Switzerland, borrows 100,000,000 for ten years commencing on January 1, 2015 for its operation in the Eurozone. According to the terms of the loan, Credit Suisse pays interest at the end of each year and pays back the principle at the end of ten years. On the borrowing date, the relevant financial information is:

Spot = SFr1.20/ (SFr: Swiss franc)

i = 5.0%

i_SFr = 3.0%

Suppose that on December 31, 2015, the spot rate is SFr1.05/.

When Credit Suisses euro debt is translated to Swiss francs at the end of 2015, how much is the translation gain or loss (do not consider the interest expense; if it is a loss, put a negative sign - in your answer)?

Your answer: SFr---------------------------

(Keep two decimals; Do not include currency symbols in your answer; Do include the negative sign, - in your answer if your answer is a negative number.)