Suppose that the interest rate in the US is 6.8% while the interest rate in the UK is 6.5% and the current spot exchange rate is $1.35/. a) What does the forward rate have to be for covered interest rate parity to hold? b) Suppose the current forward rate is higher than that rate you just specified (more $'s per ) what actions on the part of investor's would you expect to bring interest rate parity back into line? c) Why might interest rate parity hold better than PPP?