B. As a banker in charge of Forex Department, one of your jobs is to help your bank in giving ringgit/dollar exchange rates quotations, including the forward rates. After searching for the information, you manage to compile the followings: Spot rate : RM4.2000/$ Inflation rate in Malaysia : 4.0% expected annually for the next 2 years Inflation in the US : 1.5% expected annually for the next 2 years Real interest rate : 3.0% annually in both Malaysia and the US Based on the above data, answer the followings: i. Using approximation, compute the nominal interest rate per annum in both the U.S. and Malaysia, assuming that the Fisher effect holds. [4 marks] ii. Predict the 1-year fonNard rate for ringgit/dollar exchange rate. [3 marks] iii. Is the ringgit/dollar exchange rate expected to increase or decrease? Explain what this observation means. [4 marks]