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Given the following information: Japan nominal interest rate: 1% USA nominal interest rate: 3% China nominal interest rate: 5% Mexico nominal interest rate: 6% India

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Given the following information: Japan nominal interest rate: 1% USA nominal interest rate: 3% China nominal interest rate: 5% Mexico nominal interest rate: 6% India nominal interest rate: 8% USA inflation rate: 2% 1 USA 100 Japanese Yen 1 USA 5 Chinese Yuan 1 USA 25 Mexico Peso 1 USA 80 Indian Rupee 5) What are the following exchange rates? 1 Japanese Yen ? USA 1 Chinese Yuan = ? USA 1 Mexico Peso = ? USA 1 Indian Rupee = ? USA 1 Chinese Yuan = ? Japanese Yen 6) Real and inflation. 6a) What is the USA real rate of return? USA Real rate = 6b) What are the predicted inflation rates in ea Japan inflation rate

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