Use Figure 21.1 to answer the following questions. Suppose interest rate parity holds, and the current six month risk-free rate in the United States is 1.3 percent. Use the approximate interest rate parity equation to answer the following questions. a. What must the six-month risk-free rate be in Great Britain? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What must the six-month risk-free rate be in Japan? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What must the six-month risk-free rate be in Switzerland? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % a. Great Britain risk-free rate b. Japanese risk-free rate c. Swiss risk-free rate % % Figure 21.1 Exchange Rate Quotations in US$ per US$ .0167 .2391 .7608 .001287 .000297 60.0116 4.1816 1.3145 777.3 3365.07 1 1 .0532 .02678 18.7872 37.34 Country/Currency Americas Argentina peso Brazil real Canada dollar Chile peso Colombia peso Ecuador US dollor Mexico peso Uruguay peso Asia-Pacific Australian dollar 1 month 3 month 6 month China yuan Hong Kong dollar India rupee Indonesia rupiah Japan yen 1 month 3 month 6 month Kazakhstan tenge Macau pataca Malaysia ringgit New Zealand dollar Pakistan rupee Philippines peso Singapore dollar South Korea won Sri Lanka rupee Taiwan dollar Thailand baht .6825 .6822 .6813 .6799 .1442 .1287 .01402 .0000737 .00915 .00915 .00915 .00915 .00264 .1248923 .246 .6607 .00647 .0197 .7400 .0008546 .0055063 .03328 03272 1.4652 1.4659 1.4678 1.4708 6.9367 7.7725 71.316 13573 109.28 109.29 109.30 109.31 378.6 8.007 4.0655 1.5135 154.63 50.801 1.3514 1170.2 181.61 30.05 30.56 .00004315 23173 1.774 vietnam dong Europe Bulgaria lev Croatia kuna Czech Republic koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Romania leu Russia ruble Sweden krona Switzerland franc 1 month 3 month 6 month Turkey lira Ukraine hryvnia UK pound 1 month 3 month 6 month Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand .56382 .1481 .04381 .1475 1.1026 .00327912 .008025 .1105 .259 .2306 .01611 . 1045 1.0297 1.0317 1.0358 1.0418 . 1684 .0407 1.3074 1.3062 1.3049 1.3038 6.75 22.827 6.778 .9070 304.96 124.61 9.0484 3.8614 4.336 62.073 9.5669 .9712 .9693 .9654 9599 5.9391 24.5652 . 7649 7656 .7663 .767 3769 15.8006 3.455 .3038 2.6529 .0633 .2894 3.2912 2.5974 .2747 .2665 .0695 .39 3.6408 3.7517 14.3928