Look at the exchange rates in Table 22-1. Does the Swiss franc sell at a lorward premium or discount on the dollar? Does this suggest that the interest rate in Switzer land is higher or lower than in the United States? Use the interest rate parity relation- ship to estimate the 1-year interest rate in Switzerland. Assume the U.S. interest rate is 4.1% Forward Rate 3 Months 1 Year Quotation Spot Rate 1 Month 1 Spolond hange rates for 1.2007 Direct Indirect Indirect Direct 14621 6.4632 1.1322 1.9906 1.4629 6.4612 1.1299 19888 14631 6.4000 1.1264 1.9857 1.4576 6.4842 1.1179 1.9652 Indirect Indirect Europe EMU (euro) Sweden (krona) Switzerland (tranc) United Kingdom (pound) Americas Canada dollar) Mexico (peso) Pacific/Altca Hong Kong dollar) Japan lyon) South Africa (rand) South Korea (won) 9870 10.9143 9863 10.9656 9866 10.9376 9884 11.3118 Indirect 7.7974 7.7878 7.7716 Indirect 111.715 111.332 110.626 Indirect. 6.83446.87296.9514 Indirect 936.050 933.750 931.150 7.7309 108.173 7.3535 927.850 dolar. Direc tion number of dollars per unit of foreign currency, orect quotation units of foreign currency Source: Financial Times January 2, 2008, available at www.ft.com