Question 1: Interest Parity in practice First obtain data on the spot and future exchange rates (South Africa ZAR vs. US dollar) and average interest rates. You will find alternative interest rates, yet, please use the central banks policy rates. Use the monthly data for 2010-2020. Please check out the IMF databank and the website of the Central Bank of your country. Interest Parity Condition states that: RD = R$ + (ED/e $ED/$/ED/$). That is, the domestic currency return is equal to the expected return on the US dollar in terms of domestic currency. Please answer if that holds in your case study (replace the ED/e $ with the forward rates ED/f $), by plotting the left hand side of the equation on the y-axis and the right hand side on the x-axis. Briefly discuss why Interest Parity may not hold in reality.