Following information is available. U.S.A. Europe One-year nominal rate of interest 3% 5% One-year expected inflation 1% 2% Spot rate USD1.14/EUR One-year Forward rate USD1.10/EUR 1) Using the PPP, forecast the future spot rate one year from now. 2) Using the IFE, forecast the future spot rate one year from now. ES/ (1 + i) (1 + i) (1 +1) (1 +1") Sony Sony