Question 4 (20 points): Please evaluate the calculations made below and if the resulting calculations are incorrect then re-solve and show for the correct answers: 4.a. (10 points): Let assume Russian and U.S. two-year government bond rates of return are 6.9% and 2%, respectively. Also, the spot Exchange rate is 73 ruble per dollar while the expected Exchange rate two years from now is 76 ruble per dollar. Let assume if a trader is a risk-averse one and wishes to hedge his/her risk then the corresponding forward rate (for two years from now) should be equal to 80 ruble per dollar. 4.b. (10 points): Let assume that a trader wishes to calculate long-term interest rates in Russia using the expectations on inflation rates. Consider a two country case: Russia and U.S. Hereby, economic agents expect the inflation rate to be dqual to 9.5% two years later in Russia while to 2.1% two years later in U.S. Assume also that the long-term interest rate in U.S. is equal to 1%. Given all these sets of information the long-term interest rate (of the same asset) should be 6.4% in Russia Question 520 points. Please explain what resnect he nurse Question 4 (20 points): Please evaluate the calculations made below and if the resulting calculations are incorrect then re-solve and show for the correct answers: 4.a. (10 points): Let assume Russian and U.S. two-year government bond rates of return are 6.9% and 2%, respectively. Also, the spot Exchange rate is 73 ruble per dollar while the expected Exchange rate two years from now is 76 ruble per dollar. Let assume if a trader is a risk-averse one and wishes to hedge his/her risk then the corresponding forward rate (for two years from now) should be equal to 80 ruble per dollar. 4.b. (10 points): Let assume that a trader wishes to calculate long-term interest rates in Russia using the expectations on inflation rates. Consider a two country case: Russia and U.S. Hereby, economic agents expect the inflation rate to be dqual to 9.5% two years later in Russia while to 2.1% two years later in U.S. Assume also that the long-term interest rate in U.S. is equal to 1%. Given all these sets of information the long-term interest rate (of the same asset) should be 6.4% in Russia Question 520 points. Please explain what resnect he nurse