Suppose you observe a spot exchange rate of $1.257/. If interest rates are 4.2% APR in the U.S. and 5.2% APR in the euro zone, according to the International Fisher Effect what should the expected spot rate in one year be for the euro in terms of dollars (USD/EUR)? Submit your final answer rounded to two decimal places (Ex. 0.00).

You observe that the expected rate of inflation over the next year is 3.38% and current one year Treasury bills are yielding 6.87%. Based on the domestic Fisher effect (actual, not approximation), what is the one year real rate of interest? Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%).