You are a financial analyst with the U. S. based MNC Prod & Push, which sells consumer products around the world. You report directly to the CFO. You have been assigned the task of negotiating with bankers on certain forward contracts involving the USD and CHF. Reports from corporate economists indicate interest rates of 5 percent and 2.5 percent in the U. S. and Switzerland, respectively, over the next five years. Assuming a flat term structure (that is, rates do not vary from year to year) and a spot rate of CHFUSD = 1.1000, for purposes of negotiations with the banker, construct estimates of forward rates for year four contract. Assume annual compounding.