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Question 5 As of today: assume the following information is available: Australia India Real rate of interest required by investors 2% 2% Nominal interest rate

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Question 5 As of today: assume the following information is available: Australia India Real rate of interest required by investors 2% 2% Nominal interest rate 5% 119-5 Spot exchange rate A .212] neyear forward exchange rate A .19 3. Use the forward rate to forecast the percentage change in the Indian rupee over the next year. h. Use the differential in expected inflation to forecast the percentage change in the Indian rupee over the next year. c. Use the spot rate to forecast the percentage change in the Indian mpee over the next year. 1': marl\": i": .EICIFI'I]

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