Today, the interest rate on default-free one-year bonds in the U.S. is 8% and the interest rate on default-free one-year bonds in China is 5%. The current spot exchange rate is 5 yuan (Chinese dollar) = $1. What should the one-year forward exchange rate equal, explaining your reasoning? If the U.S. one-year interest rate fell to 6% and stayed at this rate, what would happen to the Chinese interest rate, the spot exchange rate, and the one-year forward exchange rate? Explain your reasoning.