Assume that the bilateral spot exchange rate between the and the $ is $ = 0.82, the Eurozones annual interest rate is 4%, and the annual forward exchange rate is $ = 0.84.

a) Find the current US interest rate that satisfies the covered interest-rate parity

b) Suppose that the annual US interest rate is the one you found in (i) and the Eurozone introduces a tax = 7.5% on capital gains from investing abroad (e.g., on foreign bonds, deposits abroad, etc.). Find the new annual forward exchange rate $ that satisfies the covered interest-rate parity on an after-tax basis.