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Help Save & E 23 Due to the integrated nature of their capital markets, investors in both the United States and the UK require the

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Help Save & E 23 Due to the integrated nature of their capital markets, investors in both the United States and the UK require the same real interest rate. 28 percent on their lending. There is a consensus in capital markets that the annual inflation rate is likely to be 38 percent in the United States and 18 percent in the UK for the next three years. The spot exchange rate is currently $18/. a. Compute the nominal interest rate per annum in both the United States and the UK, assuming that the Fisher effect holds. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 02:27:47 Nominal rate in US Nominal tante in UK b. What is your expected future spot dollar-pound exchange rate in three years from now? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Expected future spot rate c. Can you infer the forward dollar pound exchange rate for one-year maturity" (Do not round intermediate calculations. Round your answer to 4 decimal places.) Expected future spot rate

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