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1 Go to the Federal Reserve Economic Data (FRED) at the U.S. Federal Reserve Bank - St. Louis and get the daily exchange rates (https://fred.stlouisfed.org/categories/94)

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Go to the Federal Reserve Economic Data (FRED) at the U.S. Federal Reserve Bank - St. Louis and get the daily exchange rates (https://fred.stlouisfed.org/categories/94) for the U.S. dollar against the Australian dollar, the U.K. British pound, and the New Zealand dollar, and answer the following questions. Note that the exchange rates are quoted based on American terms for the U.S. 1. On 20 January 1971, what was the exchange rate between Australian dollar and the U.K. pound, E AU$/? (round to 3 decimal places) [2 marks] 2. The 6-month interest rate in Australia was 2.50% on 20 January 1971. If everybody knew the actual exchange rate of EAU$/ on 20 July 1971 as of 20 January 1971, what should be the 6-month interest rate in the U.K. according to the uncovered interest parity? [3 marks] 3. On 4 January 2016, what was the exchange rate between Australian dollar and the New Zealand dollar, EAU$/NZ$? (round to 3 decimal places) [2 marks] 4. On 4 January 2016, the 1- year interest rate in Australia was 2.00%, and the 1-year interest rate in New Zealand was 2.50%. According to the uncovered interest parity, what was the expected exchange rate for 4 January 2017 between the Australian dollar and the New Zealand dollar, E AU$/NZ$ as of 4 January 2016? (use the exact UIP equation and round to 3 decimal places) [2 marks] Go to the Federal Reserve Economic Data (FRED) at the U.S. Federal Reserve Bank - St. Louis and get the daily exchange rates (https://fred.stlouisfed.org/categories/94) for the U.S. dollar against the Australian dollar, the U.K. British pound, and the New Zealand dollar, and answer the following questions. Note that the exchange rates are quoted based on American terms for the U.S. 1. On 20 January 1971, what was the exchange rate between Australian dollar and the U.K. pound, E AU$/? (round to 3 decimal places) [2 marks] 2. The 6-month interest rate in Australia was 2.50% on 20 January 1971. If everybody knew the actual exchange rate of EAU$/ on 20 July 1971 as of 20 January 1971, what should be the 6-month interest rate in the U.K. according to the uncovered interest parity? [3 marks] 3. On 4 January 2016, what was the exchange rate between Australian dollar and the New Zealand dollar, EAU$/NZ$? (round to 3 decimal places) [2 marks] 4. On 4 January 2016, the 1- year interest rate in Australia was 2.00%, and the 1-year interest rate in New Zealand was 2.50%. According to the uncovered interest parity, what was the expected exchange rate for 4 January 2017 between the Australian dollar and the New Zealand dollar, E AU$/NZ$ as of 4 January 2016? (use the exact UIP equation and round to 3 decimal places) [2 marks]

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