Assume you have $100 Canadian dollars (CAD) to invest in either of the following two investments (both have the same risk, liquidity, and maturity): i) A one year Canadian bond which pays i=10%, ii) A one year German bond which pays i=5%. The current nominal exchange rate is enom=0.70 EUR/CAD. In a year, you expect the Canadian dollar to depreciate by 8%. i. Based on your forecast, which is the better investment? ii. How would your results change if there was a $2 (CAD) fee for any transaction on the currency exchange market? This is a \$2 (CAD) fee to convert Canadian dollars into Euros and a \$2 (CAD) fee to convert Euros into Canadian dollars. iii. Now instead of the \$2 (CAD) fee, assume there a 3% fee to convert Canadian dollars into Euros but no fee to convert Euros into Canadian dollars. Which is the better investment? iv. In part i., the German and Canadian bonds have the same risk, liquidity, maturity, and there is no tax. What do you expect to happen with the price and interest rate of the German bonds