As I already known that the i_us can be computed from the UIP equation, is the i_us in period 0 equals 2%-(1.2-1)/1=-0.18? Does it make sense?

Could anyone show me the calculation process of problem (a)&(b)?

3. We now consider a numerical example of exchange rate overshooting in the unified model. Suppose there is a permanent increase in UK money supply in period 0 that lowers nominal interest rates from 3% to 2% on impact, and raises the expected exchange rate from 1 to 1.2 pounds per dollar in period 0. After the initial impact, the interest rate rises to 2.5% in period 1,2.8% in period 2, and 3% in period 3. The spot exchange rate is initially 1 pound per dollar. US monetary policy remains unchanged. (a) Complete the table below and provide a brief justification for your answers Period. 3% 2% 2.5% 2.8% 3.0% (b) Using your answers from (a calculate the spot exchange rate in periods 0 to 3. What is the magnitude of the exchange rate overshoot in period 0? Has the economy returned to long run equilibrium by period 3? Explain