4) Suppose Daniel insists on investing in Hungarians one-year T-bills which offers 13.2% interest rate whereas its U.S. equivalent one-year T-bill offers 1.15% interest rate. Assume the U.S. and the Hungarian T-bills have the same riskiness. What recommendation (in terms of where to invest) would you give to Daniel if (assume no transaction costs):

B) IRP condition does not hold between US and Hungary? Explain your answer.