1. Recall the example of calculating the magnitude of exchange rate depreciation or appreciation in class. (a) Suppose Eyens=10 at time t and 12.5 at time t+1. Calculate the rate of depreciation of the yen against the dollar. Calculate the rate of appreciation of the dollar against the yen. Under what circumstances will the rate of appreciation of the dollar be exactly equal to the rate of depreciation of the yen? (b) What is the expected dollar rate of return on dollar deposits if today's exchange rate is $1.10 per euro, next year's expected exchange rate is $1.165 per euro, the dollar interest rate is 10%, and the euro interest rate is 5%