Suppose a U

Multiple Choice

Suppose a U.S.firm buys a one-year U.K.bond for 6,000 British pounds when 1 British pound is worth $1.50 on the foreign exchange market.What is the firm's approximate rate of return on the bond if the interest rate on the bond is 15 percent and the exchange rate is 1 British pound is worth $1.93 at maturity?

A) 11 percent
B) 15 percent
C) 25 percent
D) 33 percent
E) 48 percent