Suppose the inflation rate in the U.S. is 4% and the inflation rate in Japan is 1% a. If the real risk free rate is 1.5% what should the nominal rates on T-bills in the U.S. and Japan be according to the Fisher Equation. b. Show that the difference in the nominal interest rates in the two countries equals the difference in the inflation rates. c. The U.S. indirect exchange rate for yen is 105. Use the uncovered interest rate parity equation - S_t = S_0 [1 + (R_FC - R_HC)]^t -to forecast the exchange rate one year and two years from now