On January 26, 2000, the nominal interest rate paid on a three-month federal government Treasury bill was

Question:

On January 26, 2000, the nominal interest rate paid on a three-month federal government Treasury bill was 5.340% in the United States and 5.034% in Canada. At those interest rates, international bond traders were indifferent between holding Canadian as opposed to US Treasury bills.
a. Did the financial market expect the Canada-US to appreciate or depreciate?
b. On that date, one Canadian dollar could be purchased for 0.69046 US dollars. What did the market expect the to be in three months?
c. Three months later, on April 26, 2000, when the Treasury bills matured, one Canadian dollar could be purchased for 0.67613 US dollars. Had a Canadian saver purchased the US government Treasury bill back on January 26, what rate of return would he or she have earned?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...