2. Plot a line graph that can show the historical exchange rates and interest rate change (from 2015 2022) of GBP country and the U.S. Analyse the graph and highlight the interest rate differentials to identify patterns, trends, and fluctuations in the exchange rates. You can obtain these data from World Bank Indicator.

Covered Interest Rate Parity (CIRP): i. Describe the equation of covered interest rate parity. ii. Based on the IRP equation, use the following duration of forward rates to forecast the change of interest rate between GBP and the U.S. You do not need to forecast the expected interest rate in numbers, but you are required to point out the direction and movement of the interest rates. Connect your forecast with the observation on the trend of interest rate change in part (2). a.3-month b.6-month c.9-month d.12-month e.2-year You may enhance your justifications based on the countrys gross domestic product (GDP). For example, you expect the interest rate of country A increases because of its GDP growth as you found in the news or other sources of info.