You have $27,000 to invest and observe the following interest rates and exchange rates: Annual interest rates Deposit rate Loan rate Dollar 4.9% 5.6% Ruble 6.2% 7.1% Exchange rates Bid Ask Ruble spot $0.019 $0.02 Ruble 1-year forward $0.021 $0.022

1. how many rubles will you get from converting your dollars?

2. how many rubles will you have after depositing them at a russian bank for one year?

3. how many dollars will you get from selling your rubles in one year at the one year forward rate?

4. what is your risk-free rate of return from exploiting the higher interest rate in russia?