The Figure Given Below Depicts the Foreign Exchange Market for British

question 68

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-Given a one-year Canadian bond with a yield of 8 percent, what will be the U.S. investor's rate of return at maturity if the Canadian dollar appreciates 10 percent against the U.S. dollar?

• A)2 percent
• B)8 percent
• C)10 percent
• D)18 percent
• E)25 percent