Question 11 4.5 points Save Answer Assume that interest rate parity holds. The U.S. five-year interest rate is 3% annualized, and the Mexican five-year interest rate is 7% annualized. Today's spot rate of the Mexican peso is $0.29. The approximate five-year forecast of the peso's spot rate is $ if the five-year forward rate is used as a forecast. (Please keep 3 decimal places; note that we need the future spot rate for the answer. Applying IRP and accounting for compounding -as we learned in Ch9 "long term forecasting with forward rates-we will get the appropriate forward premium, but don't enter that as the answer! We need to figure out the forward rate based on the forward premium we have found, and then we use that as the forecast for future spot rate)