Suppose that the following conditionsall hold: uncovered and covered interest rate parity, real interest rate parity, relative and absolute purchasing power parity.

And suppose you read the following information in the newspaper:

-The current nominal interest rate for a 1-year deposit in a Brazilian bank is 20% (0.20).

-The current spot exchange rate between Mexico and Brazil is 1 (Mexican peso / Brazilian real).

-The 1-year forward exchange rate between Mexico and Brazil is 0.95 (Mexican peso/Brazilian real).

For each of the following, compute a value using the information above, or state if there is not enough information given above to do complete.

a) nominal interest rate in Mexico

b) expectedfuturespotexchangerateforoneyearfromnow(Mexicanpeso/Brazilianreal)

c) expected inflation rate differential over the next year (inflation in Mexico minus inflation in Brazil)

d) expecteddepreciation/appreciationoftheexchangerate(Mexicanpeso/Brazilianreal)