2. Suppose the interest rate on a U.S bond is 5% and the interest rate on an Argentine peso bond is 20%. However, the probability of default on the Argentine bond is 10%. That is, there is a 10% chance the bond holder collects nothing on the Argentine bond. (a) According to VIP, the peso relative to the dollar is expected to appreciate or depreciate? By how much? (5 points) (b) If the current spot rate is $0.10/peso, calculate the dollar-peso forward rate. (5 points)