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Consider the following: USD (US dollar) 3% 4% Inflation (annual rate) One-year interest rate Spot exchange rate (USD:CNY) Expected exchange rate (in one year) (USD:CNY)

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Consider the following: USD (US dollar) 3% 4% Inflation (annual rate) One-year interest rate Spot exchange rate (USD:CNY) Expected exchange rate (in one year) (USD:CNY) One-year forward exchange rate (USD:CNY) CNY (Chinese Yuan) 7% ?% 6.00 ?% ?% Required: Based on the linear approximation of international parity relations, calculate the missing figures indicated with the question marks

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