4. Let's calculate the exact rate of return on Foreign bank deposits. Suppose that Foreign bank...

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4. Let's calculate the exact rate of return on Foreign bank deposits. Suppose that Foreign bank pays 5% interest rate. Right now, the exchange rate is E = 4CH/CF. But you expect the exchange rate will be 5cH/CF in one year. Not using the simple rule, answer the exact expected rate of return on the Foreign deposits in one year. Hint: Calculate the rate of return by considering the case you deposit 4CH. 4. Let's calculate the exact rate of return on Foreign bank deposits. Suppose that Foreign bank pays 5% interest rate. Right now, the exchange rate is E = 4CH/CF. But you expect the exchange rate will be 5cH/CF in one year. Not using the simple rule, answer the exact expected rate of return on the Foreign deposits in one year. Hint: Calculate the rate of return by considering the case you deposit 4CH.