1. Assume annualized interest rates in the U.S. and Australia are 4% and 10%, respectively, and the Australian dollar can be exchanged for $0.78. (a) According to covered interest parity (CIP), is the Australian dollar quoted at a for- ward discount or at a forward premium at the 180-day maturity? Use approximate . (b) Under no arbitrage, what is the 180-day forward rate for the Australian dollar (AUD)? (c) Under no arbitrage, what is the 180-day forward rate for the U.S. dollar (AUD)? 1. Assume annualized interest rates in the U.S. and Australia are 4% and 10%, respectively, and the Australian dollar can be exchanged for $0.78. (a) According to covered interest parity (CIP), is the Australian dollar quoted at a for- ward discount or at a forward premium at the 180-day maturity? Use approximate . (b) Under no arbitrage, what is the 180-day forward rate for the Australian dollar (AUD)? (c) Under no arbitrage, what is the 180-day forward rate for the U.S. dollar (AUD)