Suppose that the NZ risk-free interest rate on bonds with one year to maturity is 4.78 percent and the UK risk-free interest rate on one-year bonds is 3.15 percent. The spot exchange rate is GBP0.42 per NZD. (a) Calculate the one year forward exchange rate F_NZD/GBP. (b) Is the GBP trading at forward premium or discount? By how much? (c) Is your answer to part (b) consistent with covered interest rate parity (CIP)? Explain. (d) Now assume that inflation rates are fully predictable, and expected inflation over the next year is 1.5 percent in UK and 1.6 percent in NZ. What would be the expected return over one year on the UK bond