| Exercise 1 Suppose the US interest rate {rug} is (\"1%. while the Japanese interest rate [Lil is 1%. The nominal exchange rate is 031$ = 131-r and the expected nominal exchange rate is 11$ = l. a What is. the expected appreciation rate of T b How many will a Japanese investor expect to obtain after one year for every 5:5 invested in American bonds? c Will he prefer to invest in American or Japanese bonds? d What is the expected depreciation rate of the 55'? e How man},r 3i will an American investor expect to obtain after one year for every 95 invested in Japanese bonds? I Will he prefer to invest in American or Japanese bonds? 3 Show that the data in this exercise is not consistent with the interest rate parity condition