destcios(40 points) 1 Assume the following: (1) the interest rate treasury bills is 8 percent per annum in Japan and 5 percent per annum in the United States; (2) the exchange rate between the U.S. dollar and the Japanese yen is initially 110 yen per dollar. Please answer the following questions: (I)Suppose people expect that the exchange rate goes up to 120 a year later, which currency you would like to hold, U.S dollar or Japanese Yen? Why? (2) According to Cover Interest Parity, how much is the equilibrium one year forward exchange rate that makes the expected return rates of Dollar and Yen the same