Assume that the 1 year inflation rate in Barbados is 3.20%, while the 1 year inflation rate in the US 183.00% The current pe care U55693 If the Purchasing Power Parity holds, the Barbados dollar (BBD) should, in about a year's time. to depreciate: US$ 0.982/BBD appreciate; US$ 0.978/BBD appreciate: US$ 0,982/BBD depreciate: USS 0.978/BBD Question 10 Assume that the 1 year inflation rate in Barbados is 3.20%, while the 1 year intation rate the us 100 euro If the Purchasing Power Parity holds, the Barbados comar (B8) should in about a partir depreciate: BBD 1.2524/USD appreciate: BBD 1.2476/USD appreciate; 880 1.2524/USD depreciate: BBD 1.2476/USD Use the following information to answer questions 22-23 The 1-year risk-free interest rate in the US is 5% and the 1-year risk free interest cate in the UK is. The current states USD und te current 1-year forward rate is 0.640/USD. Which statement is correct? Covered interest rate arbitrage involves borrowing in USD and investing in USD Covered interest rate arbitrage involves borrowing in USD and investing in Poundi. Covered interest rate arbitrage involves borrowing in Pounds and investor in USD IRP holds so covered interest rate arbitrage profit is not possible Question 23 Use the following information to answer questions 22-23. The 1-year risk-free interest rate in the US is 5% and the 1-year risk tree interest rate in the UK sex the curent et resse current 1-year forward rate is 0.640/USD. What is the covered interest rate arbitrage profit in USD that you will realize in one wear if you can borow indirimler decide to borrow in? USD 55,312 USD 25.954 USD 40.553 IRP holds so covered interest rate arbitrage is not po