INTEGRATING IRP AND IFE Assume the following information is available for the United States and the eurozone:

$\backslash$table$[[,$UNITED STATES,EUROZONE$],[$Nominal interest rate,$4\%,6\%$

Expected inflation, $2\%,5\%$

Spot rate, $,$$$1\mathrm{.}13$

One$-$year forward rate, $,$$$1\mathrm{.}10$

a$.$ Does IRP hold?

b$.$ According to PPp$,$ what is the expected spot rate of the euro in one year?

c$.$ According to the IFE, what is the expected spot rate of the euro in one year?

d$.$ Reconcile your answers to parts $($a$)$ and $($c$).$