For This Question,assume the Interest Parity Conditions Holds

Multiple Choice

For this question,assume the interest parity conditions holds.Also assume that the domestic interest rate is 10% and that the foreign interest rate is 7%.Given this information,we would expect that

A) individuals will only hold foreign bonds.
B) individuals will only hold domestic bonds.
C) the domestic currency is expected to appreciate by 3%.
D) the domestic currency is expected to depreciate by 3%.