1. A toaster set sells for 4,000 U.S. dollars. In the spot market, $1 = 120 Japanese yen. If purchasing power parity holds, what should be the price (in yen) of the same toaster set in Japan? 2. The 30-day forward exchange rate is 0.027 dollars per yen. If this forward rate represents a per year discount of 3.5% from the current spot rate, what is the current spot exchange rate? 3. The spot exchange rate is 1.54 dollars per pound. The 30-day forward exchange rate is 0.6211 pounds per dollar. The percent-per-year discount on the 30-day pound is