1.1 Using the International Fisher Effect theory together with relevant information below to determine (a) the percent change in the value of Mexican peso for the period 1 January 2016 - 31 December 2016, and (b) the exchange rate at the end of the year 2016. Currency British Pound (1 GBP) Codes GBP HKD JPY Foreign Exchange Cross Rates as of 1 January 2016 Hong Kong Dollar (1 HKD) MXN USD 12.1964 1.5727 Real interest rate in the U.K. Nominal interest rate in the U.K. Annual inflation rate in Mexico = 2.5% = 6% = 5.5% Japanese Yen (1 JPY) 0.0837 0.1369 Mexican Peso (1 MXN) US Dollar (1 USD) 92.6705