eBook Assume the following information is available for the United States and Europe U.S. EUROPE Nominal interest rate 5% Expected inflation 2 39 Spot rate $1.07 One-year forward rate $1.03 0. Does IRP hold? IRP Select in this case, b. According to PPP, what is the expected spot rate of the euro in one year? Do not round intermediate calculations. Round your answer to three decimal places $ c. According to the IFE, what is the expected spot rate of the euro in one year? Do not round intermediate calculations. Hound your answer to three decimal places 5 d. Reconcile your answers to parts (a) and (c) Parts a and combined say that the forward rate premium or discount is Select v the expected percentage appreciation or depreciation of the euro