The following table shows interest rates and exchange rates for the U.S. dollar and the Lilliputian nano.

Question:

The following table shows interest rates and exchange rates for the U.S. dollar and the Lilliputian nano. The spot exchange rate is 15 nanos = $1. Complete the missing entries:

1 Month 3 Months 1 Year

Dollar interest rate (annually compounded) .....................4.0.................4.5....................?

Nano interest rate (annually compounded)......................8.2...................?....................9.8

Forward nanos per dollar............................................?.........................?.................15.6

Forward discount on nano (% per year).........................?.........................4.8................?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...