5. (20 Points) Assume that the nominal annual interest rate on 6-month U.S. Treasuries is 0.06%. Assume that the spot rate of the British pound is $1.5263 per U.S. dollar, and the 6-month forward rate of the British pound is 0.6991 per U.S. dollar. If the interest rate parity holds, what is the nominal annual interest rate on defaultfree 6-month British pounds? 6. (10 Points) Given the following quoted spot exchange rates, compute how many euros could be purchased with one Canadian dollar. Spot Rate Euro $1.5069/Euro C$ C$2/$