Compute the nominal interest rate per annum in the U.S.., assuming that the Fisher effect holds. (X.XX%)

Suppose the year 1, year 2 and year 3 forecasts for the rate of inflation in Denmark are 3%, 4% and 5% respectively. Suppose also that the year 1, year 2 and year 3 forecasts for the rate of inflation in France are 11%, 9% and 8% respectively. If the expected spot rate between the Danish Krone (DKK) and the EUR is EUR0.1344/DKK at the end of year 3, what is the current spot rate? a. EUR0.119024/DKK b. EUR0.151762/DKK c. EUR0.128269/DKK d. EUR0.111027/DKK e. Not enough information to answer this question.

You work for a firm whose home currency is the British Pound (GBP) and that is considering a foreign investment. The investment yields expected after-tax Russian Ruble (RUB) cash flows (in millions) as follows: -RUB1170 in Year 0, and RUB521 in each of the 3 years of the life of the project. The expected rates of inflation in each country are constant per year: 4.30% in Russia, and 9.10% in the UK. From the project's perspective the required return is 6.63%, while from the parent's perspective, the required rate of return is 11.56%. The spot exchange rate is GBP0.008314/RUB. What is the NPV of the project from the parent company's perspective? O a. GBP1.713 million O b. GBP2.779 million O c. GBP24,779.23 million O d. GBP40,209.27 million O e. None of the options in this question are correct.