The interest rate on US dollar denominated assets maturing in one year is 8% and the interest rate on comparable Canadian dollar denominated assets is 10%. (a) [2 points] What is the percentage expected increase in the Canadian Dollar per one U.S. Dollar exchange rate? (b) [2 points] What would happen to the spot rate if the interest rate on Canadian dollar denominated assets increases to 15%? Explain your intuition. The interest rate on US dollar denominated assets maturing in one year is 8% and the interest rate on comparable Canadian dollar denominated assets is 10%. (a) [2 points] What is the percentage expected increase in the Canadian Dollar per one U.S. Dollar exchange rate? (b) [2 points] What would happen to the spot rate if the interest rate on Canadian dollar denominated assets increases to 15%? Explain your intuition