Consider two bonds, one issued in pounds in UK, and one issued in dollars in the United States. Assume that both government securities are one-year bonds--paying the face value of the bond one year from now. The exchange rate, E, stands at 0.6 pounds per dollar. Face value Price USA 10,000 dollars 9,708.73 dollars UK 10,000 dollars 9,389.67 pounds 1. Compute the nominal interest rate on each of the bonds. 2. Compute the expected exchange rate next year consistent with uncovered interest parity. 3. If you expect the dollar to appreciate relative to the pound by 3%, which bond should you buy