1. Assume annualized interest rates in the U.S. and Australia are 4% and 10%, respectively, and the Australian dollar can be exchanged for $0.78. (a). According to covered interest parity (CIP), is the Australian dollar quoted at a forward discount or at a forward premium at the 180-day maturity? Use approximate . (b). Under no arbitrage, what is the 180-day forward rate for (c). What is the 180-day forward rate that makes you prefer the Australia investment over the U.S. investment? USD? AUD