1.Which of the following statements are true with regard to implied forwardrates?

A.They are calculated under the assumption of an arbitrage-freemarket

B.They can be derived from zero-couponrates

C.They are not necessarily reliable predictors of future interest ratelevels

D.All of theabove

2.If the Chinese yuan currently trades at 6.8840 to the U.S. dollar, and the Malaysianringgit currently trades at 4.3395 to the dollar, the implied spot MYR/CNY exchange rateis:

A.29.8731

B.2.5445

C.1.5864

D.0.6304

3.During December, 1994, the Mexican Government indicated it intended todevelue the peso by 14% against the U.S.dollar.Such a devaluation would represent a revaluation of the U.S. dollar against the peso of whatmagnitude?

A.12.3%

B.14.0%

C.16.3%

D.Not enough information has been provided