Suppose that the current spot exchange rate of Australian dollars for US dollars is 1.04 (AUS/US$). Answer the following questions. Suppose further that the interest rate on a one-year Australian government bond is 3% and on a US government bond is 13%. What is the one-year USD/AUD forward rate, assuming the covered interest rate parity holds? (Answer up to 2 decimal places). Answer: Suppose further that inflation in Australia is 9% and inflation in the United States is 4%. Calculate the new spot USD/AUD ER, assuming the relative purchasing power parity holds. Answer: Suppose further that the Big mac costs 5.8 USD in the US and 7.3 AUD in Australia. What is the big mac index for the US using AUD as the base currency? (Answer in % and up to 2 decimal places. For example, 5.82 %). You do not have to type % for your answer.)