An investor is considering investing in one-year zero-coupon bonds. She is thinking of investing in either a

Question:

An investor is considering investing in one-year zero-coupon bonds. She is thinking of investing in either a British-pound-denominated bond with a yield of 5.2 percent or a euro-denominated bond with a yield of 4.5 percent. The current is €1.5408 per £.
a. What one year later is the break-even which would make the pound and euro investments equally good?
b. Which investment would have turned out to be better if the actual one year later is €1.4120 per £?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...