Assume that the current exchange rate between the Grand Fenwick Pound (GFP) and the $equals unity, while the annual interest rates of both countries equals 6%. However, theGFP suffers from a...

Assume that the current exchange rate between the Grand Fenwick Pound (GFP) and the $equals unity, while the annual interest rates of both countries equals 6%. However, theGFP suffers from a speculative attack and the Governor of the Central Bank of the GrandFenwick expects that this attack will lead to an annual depreciation of the GFP by 5%. Byhow much should the Governor of the Central Bank of the Grand Fenwick change theannual interest rate so as to stabilize the spot rate? [0.75]