Question 8 Question 8: The one-year interest rates for the USD and the AUD are: USD = 6% and AUD = 4%. Assume that XUSD/AUD = 0.68 and that the spot rate is consistent with the Uncovered Interest Rate Parity (UIRP) Condition. According to UIRP, what is the expected spot rate at t = 1? 0.7214 0.6522 0.6931 0.7710 Question 9 Question 9: Assume that the one-year interest rates for USD and CHF are: USD = 6% and 7-CHF = 2% and that the expected spot rate at t = 1 is E (CHF / USD) = 1.12, and that the current spot rate is XCHF/USD = 1.04; by how many percent is the USD overvalued/undervalued according to the UIRP condition? Undervalued by 7.34% Overvalued by 10.65% Undervalued by 10.65% Overvalued by 7.34%