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Use the data in table to answer the following questions: a . How many Brazilian reals do you get for your dollar? Note: Round your
Use the data in table to answer the following questions:
a How many Brazilian reals do you get for your dollar?
Note: Round your answer to decimal places.
b If the year forward rate on the real is USDBRL is the real at a forward discount or premium?
c If the year interest rate on dollars is what will be the interest rate on the real?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
d According to the expectations theory, what is the expected spot rate for the real in year's time?
Note: Round your answer to decimal places.
e According to purchasing power parity, what is the difference in the expected rate of price inflation in the United States and the
rate in Brazil?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
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