The one-year risk-free interest rote in Mexico is 12 percent. The one-year riskiffee rate in the United States in 3 percent. Assume that interest rate parity exists. The spot rate of the Mexican peso is $0.15 a. What is the forward rate premium? Use a minks sign to enter a negative value, if any. Hound your answer to three decimel places b. What is the one-vear forward rate of the peso? Do not round intermediate cakulations. Round your answer to four deomal places. 5 C. Based on the international Fisher offect, what is the expected change in the spot cate over the next yeac? Use o minut sign to enter a cegutive veive. if any, Round your anceer to thret decimal places. decimal ploces. 4 e. Campare Your ahswers ta (b) and (d) and evploin the relationship. 1. The answeis are different. The calculotion ef the formard rate is baied on the ieteceit rate istichentiat whech is hygher bian the diflence betweed ifabon. 11. The answein arn the same. When tap holds, the forwerd rale prenium and the expected percontage change in the spit fite are derixed in the sante imarnet, Thun, the formard premium ancves os the focecasted percentage change in the spot rate according to lfe. difference is higher than the forward rate premum, the future spot rote is tigher thas the forward rate