Hi How are you? I have 2nd project and I would like you will take care of it if it's possible. Thank you.

International Finance

Project Part II

1. Fisher Effect

1) Check the money market rate (one year government security) of US$ and your currency at two time points - beginning of year 2013 and 2014. Make comparison.

2) Find the inflation rates of US and your country in year 2013 and 2014. Make comparison.

3) Use the above information to test Fisher Effect for both year 2012-2013 and year 2013-2014 periods.

2. International Fisher Effect. Use above information and the information from Part I question 6 to test International Fisher Effect. Does it hold for year 2012-2013 and year 2013-2014 periods?

3. Forward Rate and Interest Rate Parity

1) Does forward market exist on your currency against US Dollar and/or other major currencies? Find the one year forward rate at the beginning of year 2012 and 2013.

2) Compute the difference between forward rate and spot rate. Is it a premium or discount atthe beginning of year 2012 and 2013?

3) Use above results and information from question 1 to check if interest rate parity holdsfor year 2012 and 2013.