The relationship between interest rates and exchange rates can be represented through the concept of interest rate parity. Consider the following: Suppose you observe the following spot and forward exchange rates between the U.S. dollar ($) and the Canadian dollar (C$): Spot Exchange Rate 0.8876 One-Year Forward Exchange Rate 0.9023 Canadian dollar (U.S. dollar/Canadian dollar) The current one-year interest rate on U.S. Treasury securities is 8.03%. If interest rate parity holds, what is the expected yield on one-year Canadian securities of equal risk? 0 5.96% ? 6.27% o 5.64% ? 6.58% Which of the following statements is implied by interest rate parity theory? O Interest rates in all countries with the same political risk should be the same. O If two countries have the same inflation rate, they should have the same interest rate, too O An investment in one's home country should have the same return as a similar investment in a foreign country O Interest rates in all countries should be the same