The Next Questions Refer to the Following

Multiple Choice

The next questions refer to the following.
Suppose one-year interest rates in Great Britain are 10%, and one-year interest rates in the US are 6%. During the course of the year, the pound depreciates 10% against the dollar.
-Compared to buying US bonds,American speculators who purchased British bonds at the start of the year received rates of return about

A) 26 percentage points lower
B) 13 percentage points higher
C) the same
D) 2 percentage points higher
E) 7 percentage points lower