1. You recently purchased an investment that yields 8% per year. The current inflation rate is 3% per year. What is the real rate of return on this investment?
2. Given these two exchange rates, $1= 12.352 Mexican pesos and $1= 0.7729, compute the cross-rate between the Mexican peso and the Euro. State this exchange rate in pesos and in Euros. ( Do not round intermediate calculations, round your answers to 4 decimal places.) Cross rate of 1 peso ____ Cross rate of 1 euro______.