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Question 4 (1 point) Suppose 1 Mexican Peso equals 0.049 US dollars in the spot market. Six-month Mexican government debt has an annualized return of

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Question 4 (1 point) Suppose 1 Mexican Peso equals 0.049 US dollars in the spot market. Six-month Mexican government debt has an annualized return of 0.055 (and thus a 6-month periodic return of {rm/2)). Six-month U.S. government debt has an annualized return of 0.02 and a periodic return of (rd/2). If interest rate parity holds, what is the value of 1 Mexican Peso in US dollars U.S. in the 180-day forward market? AAP

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