We know that the value of the Mexican Peso will depend on expected changes in relative interest rates between the US and Mexico. Significant financial trade occurs between the US and Mexico. In addition, the $10-$year $($and $5-$year$)$ government nominal interest rate is an important benchmark rate for many financial assets.

Current long$-$term expected Inflation and $10-$year government nominal interest rates $($yields$)$ for both countries and the current Spot exchange rate of the Mexican Peso $($MXN$)$ are shown below:

US long$-$term expected Inflation and $10-$year US government nominal interest rate $($yield$)$: $2\mathrm{.}38\%,4\mathrm{.}66\%$

Mexican long$-$term expected Inflation and $10-$year Mexican government nominal interest rate $($yield$)$: $5\mathrm{.}1\%,9\mathrm{.}21\%$

Current Spot exchange rate of Mexican Peso $=$ USD $0\mathrm{.}0525$ per $1$ MXN

Recall the approximate Fisher Effect relationship:

nominal interest rate $$ real interest rate $+$ E$[$Inflation$]$

$$ approximately

E$[$Inflation$]=$ Expected Inflation

Using the Fisher effect to estimate real interest rates, the implied real interest rate for the US is Blank $1.$ Calculate the answer by read surrounding text. $\%$ and for Mexico is Blank $2.$ Calculate the answer by read surrounding text. $\%.$ Enter your answers as negative or positive values $($they are in percent$),$ rounded to $2$ decimal places, example: $0\mathrm{.}50,1\mathrm{.}65$

The difference in estimated real interest rates between Mexico and the US is Blank $3.$ Calculate the answer by read surrounding text. $\%.$ Enter your answer rounded to $2$ decimal places, example: $2\mathrm{.}15$

Assuming the estimates above are reasonable AND THAT INFLATION DIFFERENTIALS have a dominant affect over the next year the Mexican Peso should Blank $4.$ Calculate the answer by read surrounding text. against the USD. Enter your answer as $1$ for $$appreciate$$ or $0$ for $$depreciate$.$