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ONLY QUALITY RESPOSE PLEASE. Assume that the following information is available as of today. US Germany Real Rate of Interest Required by Investors 1% 1%

ONLY QUALITY RESPOSE PLEASE.

Assume that the following information is available as of today.

US Germany
Real Rate of Interest Required by Investors 1% 1%
Nominal Interest Rate - 3%
Spot Rate -

($/)1.08
One Year Forward Rate -

($/)1.05

Find out the nominal interest rate in U.S. In your process for deriving the nominal interest rate, clearly explain which principle(s), i.e. parity, you are using.

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