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1. A zero-coupon British bond promises to pay GBP 100,000 in oneyear. The current exchange rate is USD 2.00 / GBP and inflation isforecast at 5 percent in the US and 2 percent in the UK. Theappropriate discount rate for a bond of this risk would be 10percent if it paid in USD. What is the appropriate price of thebond today in USD?2. A US-based manufacturer is considering an internationalinvestment opportunity that will produce the following cash flowsin EUR. The current spot rate is USD 1.50 / EUR. What is the NPV ofthis project in USD if inflation in the US is expected to be 5percent and inflation in Europe is expected to be 10 percent, andthe required rate of return is 10 percent in USD?YearCF(EUR)0-65,0001100,0002150,000Thank you for your help!