Modified Problem 8: In July 2005, the yuan was revalued from yuan 8.2800/$ to yuan 8.1100/$.

Part 1: Calculate the % D in the US$ in July 2005. Is this an appreciation or a depreciation of the US$?

Part 2: The Hong Kong dollar has been pegged to the US$ under its currency board regime at HK$ 7.8000/$. Calculate and show how the value of the HK$ change against the yuan in July 2005 due the revaluation of the yuan.