The following shows interest rates and exchange rates for the U.S dollar and the Philippine peso in 2007. The spot exchange rate is 47.46 pesos= $1. Compute the missing entries:
1 month 3 months 1 year
Dollar interest rate (annually compounded) 5.3 5.3 ?
Peso interest rate (annually compounded)
Forwarded pesos per dollar) 4.15 ? 4.95
Forwarded pesos per dollar ? ? 47.482
Forwarded premium on peso (% per year) ? +0.19