You Bought a Yen-Denominated Corporate Bond at the Beginning of the Year

Multiple Choice

You bought a yen-denominated corporate bond at the beginning of the year for ¥100,000.The bond paid 3 percent annual interest and was trading for ¥110,000 at year-end.The exchange rate was $1 = ¥100 at the beginning of the year and $1 = ¥122 at year-end.What was your U.S.dollar holding period return on the bond?

A) 3%
B) 7%
C) 10%
D) 13%
E) 30%
F) None of the above.