Country Currency Exchange Rate Europe Euro (EUR or €) 1.217 Eurozone countries Sweden Krona (SEK) 8.561 Switzerland Franc (CHF) .983 United Kingdom Americas Pound (GBP or £) 1.393 Brazil Real (BRL)...

Extracted text: Country Currency Exchange Rate Europe Euro (EUR or €) 1.217 Eurozone countries Sweden Krona (SEK) 8.561 Switzerland Franc (CHF) .983 United Kingdom Americas Pound (GBP or £) 1.393 Brazil Real (BRL) 3.484 Canada Dollar (CAD) 1.284 New peso (MXN) Mexico Asla/Africa 18.846 Australla Dollar (AUD) 1.322 China Yuan (CNY) 6.324 China (Hong Kong) India Dollar (HKD) 7.847 Rupee (INR) Yen (JPY or ¥) Rand (ZAR) 66.910 Japan 109.430 South Africa 12.433 South Korea Won (KRW) 1,081.200


Extracted text: Use Table 22.1 to answer the following questions: a. How many Brazilian reals do you get for your dollar? (Round your answer to 3 decimal places.) b. If the 1-year forward rate on the real is BRL3.588 = USD1, is the real at a forward discount or premium? c. If the 1-year interest rate on dollars is 1.5%, what will be the interest rate on the real? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) d. According to the expectations theory, what is the expected spot rate for the real in 1 year's time? (Round your answer to 3 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? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is not complete. $1 = BRL 3.484 a. Is the real at a forward discount or premium? Interest rate on the real Expected spot rate: 1 USD = Difference in expected inflation b. Forward discount % C. d. BRL е. %