2. China currently has a nominal one-year risk-free interest rate of 40 per cent, which is primarily due to the high level of expected inflation. The Australian nominal one-year risk-free interest rate is 8 per cent. The spot rate of China's currency (the yuan) is A$0.14. The one-year forward rate of the yuan is AS.108. What is the forecasted percentage change in the yuan if the spot rate is used as a one-year forecast? What is the forecasted percentage change in the yuan if the one-year forward rate is used as a one-year forecast? Which forecast do you think will be more accurate? Why