Seven Help Save & Sut Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity PPP) and the international Fisher Effect (IFE) to forecast spot exchange rates. Omni gathers the financial information as follows: 1111 $0.159 Base price level 100 Current U.S. price level Current South African price level 105 Base rand spot exchange rate $0.176 Current rand spot exchange rate Expected annual U.S. inflation 73 Expected annual South African inflation 5% Expected U.S. one-year interest rate Expected South African one-year interest rate BA Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively a. The current ZAR spot rate in USD that would have been forecast by PPP. (Do not round Intermediate calculations. Round your answer to 4 decimal places.) 18 ZAR spot rate under PPP b. Using the IFE, the expected ZAR spot rate in USD one year from now. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Expected ZAR spot rate c. Using PPP, the expected ZAR spot rate in USD four years from now. (Do not round intermediate calculations. Round your answer c. Using PPP, the expected ZAR spot rate in USD four years from now. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Expected ZAR under PPP