Suppose the current spot FX rate is S0 = NOK 0.9600/SEK. The consensus long-term forecast for Norwegian inflation is 4.25% per year, while the long-term forecast for Swedish inflation is 4.10% per year. Estimate the spot FX rates which will obtain for the next five years.

1. That is, estimate (in NOK/SEK) S1, S2, S3, S4, and S5. (How much confidence do you have in your forecast?)