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The US and Switzerland are running annual inflation rates of 6% and 2% respectively, and the spot rate is SFr1 = $0.75.Find the PPP rate

The US and Switzerland are running annual inflation rates of 6% and 2% respectively, and the spot rate is SFr1 = $0.75.Find the PPP rate for Swiss Franc in five years. 


What can you say about the expected interest rate for the two countries? 


Is the US dollar appreciating in value against Swiss Franc? (State any assumptions used)

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